Direct Subsidized and Unsubsidized Loans
You may be offered fixed-rate, direct loans from the U.S. Department of Education’s Office of Federal Student Aid as part of your financial aid package to attend IUPUC.
Subsidized and unsubsidized federal loans can help cover the cost of earning your degree. Earning a degree is an excellent investment in your future, but you must repay what you borrow, so be sure you understand your options and responsibilities.
To be considered for a direct subsidized or unsubsidized loan, you must first complete the FAFSA.
Direct Subsidized Loans
Subsidized loans are available to undergraduate students demonstrating financial need.
IUPUC determines the amount you can borrow, which may not exceed your financial need as determined by your FAFSA information. The U.S. Department of Education pays the interest while you are enrolled at least half time (six credits per semester) as an undergraduate student.
Loan repayment starts six (6) months after students enrollment falls below half-time. If you choose not to pay the interest that accrues during the grace period, it will be added to your principal balance.
Direct Unsubsidized Loans
Unsubsidized loans are available to both graduate and undergraduate students. There is no requirement to demonstrate financial need.
IUPUC determines the amount you can borrow by considering the cost of attendance and other financial aid you receive.
- For direct unsubsidized loans, you are responsible for paying the interest at all times.
- If you choose not to pay interest while in school, during the grace period, or during periods of deferment or forbearance, interest will accrue and be added to the principal amount of your loan.
Terms & Conditions
In general, the terms and conditions of these loans include:
- Yearly and lifetime limits on the amount of direct loans you can receive
- A processing fee that is proportionately deducted from each loan disbursement
- Fixed interest rates, which are based on the date of your first disbursement and the status of your loan
- Entrance and exit counseling to help you manage your loan(s) and ensure you understand your rights and responsibilities
- A signed master promissory note (MPN)
- Repayment begins six months after you graduate, leave school, or drop below half-time status
Once a loan has been disbursed, you can track and retrieve your loan information through the National Student Loan Data System.