Federal Direct Subsidized / Unsubsidized Student Loan information and instructions.
2023-24 Academic Year
Complete After May 1 Deadline: mid-June
Federal Direct Subsidized / Unsubsidized Student Loan Information and Instructions: 2023-24 Academic Year
Complete After May 1
Deadline: mid-June
Direct Subsidized Student Loan - Undergraduate Borrowers
- Borrower: student
- Interest Rate: 5.50% (fixed) as of 7/1/2023
- Origination fee: 1.057%*
- Grace Period: 6 months
- Repayment Period: 10 years
- The government pays the interest while the student is enrolled at least half-time. Interest accrued during the grace period will be payable by the student.
- Awarded only to students with financial need.
Direct Unsubsidized Student Loan - Undergraduate Borrowers
- Borrower: student
- Interest rate: 5.50% (fixed) as of 7/1/2023
- Origination fee: 1.057%*
- Grace Period: 6 months
- Repayment Period: 10 years
- Interest accrues during the in-school period but can be capitalized (added to the principal) for repayment after the student drops to less than half-time enrollment.
- Awarded to students regardless of financial need.
Direct Unsubsidized Student Loan - Graduate Borrowers
- Borrower: student
- Interest rate: 7.05% (fixed) as of 7/1/2023
- Origination fee: 1.057%*
- Grace Period: 6 months
- Repayment Period: 10 years
- Interest accrues during the in-school period but can be capitalized (added to the principal) for repayment after the student drops to less than half-time enrollment.
- Awarded to students regardless of financial need.
*The origination fee may change for loans first disbursed on and after October 1, 2023
Federal Direct Student Loan Eligibility Amounts
| Grade Level | Base Direct Loan Amount (Subsidized or Unsubsidized) | Additional Unsubsidized Direct Loan Amount |
|---|---|---|
| First-Year | $3,500 | $2,000 |
| Sophomore | $4,500 | $2,000 |
| Junior or Senior | $5,500 | $2,000 |
Graduate students are eligible for up to $20,500 in unsubsidized direct loans with an aggregate loan limit of $138,500. Federal legislation limits the maximum undergraduate Federal Direct Loan borrowing to $31,000 through the Federal Student Loan Program (unless the student is an independent student or a parent cannot borrow through the Federal PLUS Loan Program) Independent students and students whose parents are unable to obtain a Plus Loan are eligible for additional Unsubsidized Direct Loan funds.
Keep track of your federal student loans!
See some Student Loan Repayment Examples.
Federal Direct Subsidized/Unsubsidized Loan Requirements
If not completed by mid-June, Direct Loans will be removed from your award
- Complete Entrance Counseling at studentaid.gov. The Federal Government requires you to complete entrance counseling to ensure that you understand the responsibilities and obligations you are assuming.
- Located under the Complete Aid Process navigation tab
- Have your FSA ID available- this must be completed with the student’s FSA ID
- Have 20-30 minutes available; you must complete the entire counseling in one session.
- List Gettysburg College as your School Name
- If you would like to enter your 2022-23 loan information, have your financial aid award available—sample loan amounts will not be pre-populated
- Complete a Master Promissory Note (MPN) for a Subsidized/Unsubsidized Loan at studentaid.gov . This is a legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender or loan holder. This may also be referred to as a Loan Agreement.
- Located under the Complete Aid Process navigation tab
- Have your Social Security Number, FSA ID and names, addresses and telephone numbers for two references available.
- Have 20-30 minutes available; you cannot save a partially completed Loan Agreement (MPN).
- List Gettysburg College as your School Name
Students will only complete Entrance Counseling and the Loan Agreement (MPN) the first time that they borrow a Federal Direct Student Loan. During their final semester at Gettysburg (or upon dropping to less than half-time enrollment), students will be required to complete an online Exit Counseling session to prepare them for loan repayment.