Federal Loans for Graduate Students

Federal Direct Unsubsidized Loan

The Federal Direct Unsubsidized Student Loan is a federal loan with a low interest rate for Graduate students attending accredited colleges and universities. This is the primary financial aid source for Graduate students.

    • Students must complete the to have their eligibility determined for this loan.
    • The interest rate is 8.07% for new loans disbursed on or after July 1, 2026.
    • The U.S. Department of Education does NOT pay interest on this type of loan and the interest will start accruing on the date of your first disbursement.
    • Students may pay interest while in school but have the option to defer paying the interest until the loan goes into repayment.
    • This loan goes into repayment once you have dropped below a half-time enrollment status.
    • There is a loan fee on this federal loan and the fee will be deducted from each loan disbursement before the school receives the loan. The amount of the loan fee for loans first disbursed on or after October 1, 2020 and before October 1, 2026 is 1.057%.
    • Maximum Total Debt allowed from Federal Direct Student Loans (Undergraduate + Graduate) = $100,000 with a maximum $65,500 in Direct Subsidized Student Loans
    • The loan will be listed on your Financial Aid Award Notification if you filed the Free Application for Federal Student Aid (FAFSA) and you are eligible to borrow this federal student loan.
    • TWO steps need to be completed for the loan to be applied to your Bursar’s account. These steps are completed at the Federal Student Aid website . To access the website, use the FSA ID (username and password) you use for the FAFSA.
      • Step 1: - This is a learning tool which lets you know your rights and responsibilities as a federal student loan borrower. To complete this step visit:
      • Step 2: – This legal document is your commitment to repay the loan(s) you borrow. To complete this step visit:
    • After all requirements have been met and appropriate documents submitted, the Financial Aid Office will process the loan you accepted on your Financial Aid Award Notification.
    • Once the loan is processed, the U.S. Department of Education will place your loan with a federal loan servicer which is a company that handles the billing and other services on your federal student loan(s). Your loan information will be accessible to authorized users of the system.
    • To view your processed loans login to the using your FSA ID you used for your FAFSA.
    • The following link offers important information about . Repayment plans and calculators are available as well as information on Postponing Repayment (Deferment, Forbearance), Public Service Loan Forgiveness, Cancellation, and Consolidation.
    • You can estimate your monthly payments using the .
    • The has been established by the Dept. of Education to resolve problems between you and your school, lender, guarantor, and loan servicer.
    • Contact Information for the Ombudsman:
      Online:
      Telephone: 1-800-433-3243
      Fax: 606-396-4821
      Mail: U.S. Dept. of Education, FSA Ombudsman Group, P.O. Box 1854, Monticello, KY 42633

Federal Direct Graduate PLUS Loan

A credit based federal loan where the student is the borrower. The Graduate PLUS loan is only eligible to returning students who meet the US Department of Education's definition of "Legacy" student as outlined in the One Big Beautiful Bill Act. The Office of Financial Aid can let you know if you meet the legacy definition and if you are eligible. All new Graduate students beginning in Fall 2026 are not eligible for the federal Graduate Plus loan.

Students who are determined to be eligible may borrow up to the Cost of Attendance minus any financial aid the student is receiving. A credit-worthy endorser (co-signer) may be required on the loan for it to be approved. Students must first have their eligibility determined for the Federal Direct Unsubsidized Student Loan before borrowing the Graduate Plus Loan.

For more information about this loan program visit our Loans for Graduate Students Web page.