Federal Direct Unsubsidized Loan

A guaranteed student loan for U.S. citizens or permanent residents who do not show financial need under federal regulations. Direct Unsubsidized loans may also be available to undergraduates who have reached the borrowing limit for Direct Subsidized loans.

  • You must be a U.S. citizen or a permanent resident
  • You must be enrolled at least half-time in a degree program
  • You must maintain satisfactory academic progress
  • You cannot be in default on a federal student loan
Interest rate: 

Fixed at 5.50% for loans first disbursed from July 1, 2023, through June 30, 2024

Interest rate for graduate students: 

Fixed at 7.05% for loans first disbursed from July 1, 2023, through June 30, 2024

Loan fees: 

1.057% origination fee for loans first disbursed from October 1, 2020, through September 30, 2024

Loan limits: 

The federal government sets limits on the amount in Direct Unsubsidized loans that a student may be eligible to receive in each academic year and in total. Limits vary based on whether the student is pursuing an undergraduate or graduate degree, among other factors.

For loan limits and further details, please see under "How much can I borrow?" on the Federal Student Aid webpage on Direct loans.

Interest accrual: 

Students are responsible for interest payments on the loan while in school. A student may pay the interest monthly while still in school or may capitalize the interest by allowing it to accrue and adding it to the principal when the loan goes into repayment.


Six month grace period; time frame depends on the type of repayment plan.

For information on repayment plan options, visit the Federal Student Aid Repayment Plans webpage.

Application procedure: 

New borrowers will be notified to complete the Direct Loan Master Promissory Note once Yale originates the loan with the Department of Education. They will also be notified to complete the Federal Loan Entrance Counseling Session required for all first-time borrowers.

Application procedure for graduate students: 

Please visit the website of your graduate or professional school for application procedures.

Additional resources: