2023-2024 CFA Graduate Federal Direct Unsubsidized Loan Request
Federal Direct Unsubsidized Loan
The Federal Direct Unsubsidized Loan is a low-interest loan available to students for post-secondary educational expenses. Most matriculated students are eligible for an Unsubsidized Loan each academic year. The loan is made to the student who is responsible for repayment.
|Terms for Loans Disbursed Between July 1, 2023 and June 30, 2024|
|Origination Fee||1.057% deducted from each loan disbursement|
|Annual Loan Limit||$20,500|
|Aggregate Loan Limit||$138,500 (of which no more than $65,500 may be Subsidized Loan)|
|Grace Period||6 months after student ceases to be enrolled at least half-time|
|Repayment Period||10–25 years, depending on the repayment option selected|
Additional information is available on the Federal Student Aid website.
You are eligible to participate in the Federal Direct Loan Program if you are:
- A U.S. citizen or permanent resident
- Enrolled in a degree program on at least a half-time basis (or considered at least half-time by your School/College), and credits count towards your degree
- Making satisfactory academic progress
- Do not have an outstanding balance from a prior period of enrollment at Boston University.
- Have not met the cumulative (aggregate) limit for the Federal Direct (formerly Stafford) Subsidized/Unsubsidized loan program of $138,500 for graduate and professional students, including any amount borrowed for undergraduate study.
You must complete the following Federal requirements for your Unsubsidized loan to be credited to your student account:
- Complete a 2023-2024 Free Application for Federal Student Aid (FAFSA). Boston University’s School Code is 002130, and you must select Boston University as your school choice for Boston University to receive your FAFSA data. You will receive a Student Aid Report (SAR) from the Department of Education, and you should look at this report for any additional information that may be needed.
- First-time borrowers must complete a Direct Loan Master Promissory Note (MPN). The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).
- First-time borrowers must complete Entrance Counseling online. You’ll need to complete entrance counseling to ensure you understand the responsibilities and obligations you are assuming by requesting a Federal Direct Student Loan. If you completed Entrance Counseling as an undergraduate student, you will only need to complete this again if you also plan to apply for a Federal Graduate PLUS Loan.
Fund Disbursement Process
Federal regulations require that all Federal Direct Loans be disbursed in two equal installments. The second disbursement can only be made available halfway through the loan period. This means that for students who attend both semesters of the academic year, half the loan amount is available in the fall, and the other half is available in the spring. For students borrowing for one semester only (January graduates or students beginning their studies in January), there will be one disbursement for the entire loan amount.
Annual and Lifetime borrowing limits
Graduate and professional students can borrow up to $20,500 in a Direct Unsubsidized Loan each academic year. The cumulative (aggregate) limit for the Federal Direct (formerly Stafford) Subsidized/Unsubsidized Loan program is $31,000 for undergraduates and $138,500 for graduate and professional students, including any amount borrowed for undergraduate study.
Frequently Asked Questions
When will loan fund be available?
Once you have completed all requirements (valid FAFSA, Entrance Counseling, MPN) and your loan has been processed, your loan funds will be applied directly to your student account. If this creates a credit on your account, you may be able to request a refund by completing the following steps:
- Login to MyBU Student Portal
- Go to the Money Matters tab
- Select “Student Account Inquiry.”
- Select the “Request Refund” link
- Follow guidelines so requests can be direct deposited into a bank account
Please Note: Refunds cannot be approved until the first day of your scheduled classes due to Federal regulations on Federal financial aid refunds.
When does repayment begin?
You must begin repayment six months after you graduate, leave school, or cease to be enrolled at least half-time (typically less than six credits per semester). During this six-month grace period, you will receive repayment information from your loan servicer and be notified of your first payment due date. All students are required to complete loan Exit Counseling upon graduation, dropping to less than half-time status, or ceasing to be enrolled. Exit Counseling is a tool used to help you navigate student loan repayment. You can also visit StudentAid.gov for more information regarding your Federal loans and repayment information.