Federal Direct Unsubsidized Loans for Graduate Students | Financial Aid
General Information
- Student must be enrolled at least half time (3 graduate credits)
- Student must be meeting Satisfactory Academic Progress (SAP) Standards
- Student cannot be in default on a Federal Student Loan or owe an overpayment on a Federal Student loan or grant
- Interest starts accruing at the time of disbursement
- No repayment required while student is enrolled at least half time
- One six-month grace period after the student is no longer enrolled half time before repayment begins
- Standard repayment is 10 years
Annual maximum
- Up to $20,500
- NEW for 2026-27 - Annual loan amounts will be adjusted based upon student’s actual enrollment for the academic year. Students enrolled/completing less than 12 credits for the academic year may have their loan amount reduced.
Cumulative maximum federal loan limits
- $138,500 Unsubsidized/Subsidized (includes amounts borrowed as undergraduate) if meet legacy provision* below
- $100,000 Unsubsidized (does not include amounts borrowed as an undergraduate) and $257,500 Unsubsidized/Subsidized (includes amounts borrowed as an undergraduate) if you do not meet the legacy provision* below
Interest rates
- 8.08% For Graduate Direct Unsubsidized loans disbursed between July 1, 2024 and June 30, 2025
- 7.94% For Graduate Direct Unsubsidized loans disbursed between July 1, 2025 and June 30, 2026
Fees
- 1.057% For loans first disbursed after Oct. 1, 2020 and before Oct. 1, 2026
- Fees are deducted from the Direct Unsubsidized loan proceeds when they are disbursed. For example, on a $20500 loan, $217 will be kept as a loan fee and therefore $20283 will be credited to the students account when it is disbursed to the school.
*Legacy Provision
The One Big Beautiful Bill Act (OBBBA) signed in July 2025 introduced several changes to federal student loans beginning July 1, 2026. If students meet legacy provisions, the changes may not apply. Please Note: Federal guidance continues to evolve as the U.S. Department of Education finalizes implementing regulations. Information reflects the most current guidance available.
To qualify for legacy provision:
- Any Federal Direct Loan funds, Unsubsidized or Graduate PLUS, were disbursed to the student’s account prior to July 1, 2026.
- Student is enrolled in the same graduate program as they were prior to July 1, 2026 when federal loan funds were disbursed.
- Must be continuously enrolled at Carroll and not change program to maintain legacy provision.
Applying for Direct Unsubsidized Loans
- Complete the Free Application for Federal Student Aid (FAFSA) at studentaid.gov/fafsa
- Receive your final financial aid offer from Carroll
- Submit your award - Accept/Reject/Modify your Federal Loans
- First time borrowers at Carroll need to complete a Direct Master Promissory Note at studentaid.gov
- Login clicking the blue "Log In" button next to "I'm a Graduate/Professional Student"
- First time borrowers at Carroll need to complete Entrance Counseling at studentaid.gov
- The Federal Government requires that all first time Federal Direct Loan borrowers complete an entrance counseling session before they receive any loan funds. This session is designed to provide the borrower with important information about the Federal Direct Loan program, including your rights and responsibilities as a borrower.
- Login clicking the blue "Log In" button next to "I am a Graduate or Professional Student"
Exit counseling
- Federal regulations require students to complete this once you graduate from Carroll or your enrollment drops below half time status
- Provides the borrower with important information regarding your rights and responsibilities as a borrower.
- Assists you on how to manage repaying your student loans and what you can expect
- Complete online at studentaid.gov under the Loan Repayment dropdown.
