Federal Direct Loans (Subsidized & Unsubsidized)

Overview
Eligibility
Interest Rates
Limits
How to Apply
Loan Entrance Counseling and Loan Agreement (MPN)


Overview

Direct Subsidized Loan

Need-Based: The Federal Direct Subsidized Loan is based on financial need, as determined by the results of your FAFSA. The loan is considered "subsidized" because the government pays the interest for you while you are enrolled in school at least half-time (6 credit hours for undergraduates each semester) and during periods of authorized deferment.  This loan disburses in two equal amounts (once during the fall semester and once during the spring semester).

Direct Unsubsidized Loan

Not Based on Financial Need: The Federal Direct Unsubsidized Loan is not based on financial need, and the the government does not subsidize this loan. As a result, you are responsible for all interest that accrues during school, grace periods, and deferment periods. You may choose to make interest payments while in school or capitalize the interest (add it to your loan principal) until repayment.  This loan disburses in two equal amounts (once during the fall semester and once during the spring semester).


Eligibility

  • You must be a degree-seeking student who is admitted with full-standing to a degree-bound program at Wichita State.
  • You must be enrolled at least half-time (6 credit hours as an undergraduate student or 5 credit hours as a graduate student).
  • You must be a U.S. citizen, permanent resident of the U.S., or permanent resident of an eligible trust territory.
  • You must not be in default on any student loans and must not owe a refund on any Title IV Program, such as a Pell Grant, FSEOG, Federal Perkins Loan, Federal Work Study, Federal Subsidized Direct Loan, Federal Unsubsidized Direct Loan, Federal PLUS Loan or Consolidation Loan.
  • You must be maintaining Financial Aid Satisfactory Academic Progress toward your degree.
  • You must have satisfied all Selective Service Act requirements.

Interest Rates

Interest rates are set by federal regulation, effective as of July 1 of the academic year.  Current fixed interest rates are:

Type of Loan Interest Rate* Origination Fee* Interest Type

Accrues Interest During

School/Grace Period

Direct Subsidized Loan 5.05%

Before 10/01/2018: 1.066%

On & After 10/01/2018: 1.062%

 Fixed No**
Direct Unsubsidized Loan
(Undergraduate Students)
5.05%

Before 10/01/2018: 1.066%

On & After 10/01/2018: 1.062%

 Fixed Yes
Direct Unsubsidized Loan
(Graduate Students)
6.60%

Before 10/01/2018: 1.066%

On & After 10/01/2018: 1.062%

 Fixed Yes

*Due to the Sequestration of Federal Student Aid Programs, interest rate and origination fees may be subject to change.

**If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is generally based on the published length of your current program.


Limits for Direct Subsidized & Unsubsidized Loans

The federal government sets both annual and aggregate (total) limits on the amount of Federal Direct Subsidized/Unsubsidized Loans that you may borrow. Your eligibility may be less than the federal loan limits. Federal guidelines require that all financial assistance, including loan funds, cannot exceed the cost of attendance.

Undergraduate Students

Dependent students may not borrow more than $31,000 (unless a parent has been denied a Parent PLUS Loan) while earning their undergraduate degree(s).  Independent students and dependent students whose parent has been denied a Parent PLUS Loan may not borrow more than $57,500.  The annual amounts, according to grade level, are listed in the tables below.

Undergraduate Dependent Students (Whose Parents Have Not Been Denied a Parent PLUS Loan)
Maximum Aggregate Limit for Dependent Students $23,000 $8,000 $31,000
Grade Level Base Amount
(maximum that may be subsidized)
Additional Unsubsidized Total
Freshman
(0-29 credit hours)
$3,500 $2,000 $5,500 
Sophomore
(30-59 credit hours)
$4,500 $2,000 $6,500
Junior
(60-89 credit hours)
$5,500 $2,000 $7,500
Senior (and beyond)
(90+ credit hours)
$5,500 $2,000 $7,500
Undergraduate Independent Students & Dependent Students Whose Parents Have Been Denied a Parent PLUS Loan
Maximum Aggregate Limit for Independent Students $23,000 $34,500 $57,500
Grade Level Base Amount
(maximum that may be subsidized)
Additional Unsubsidized Total
Freshman
(0-29 credit hours)
$3,500 $6,000 $9,500 
Sophomore
(30-59 credit hours)
$4,500 $6,000 $10,500
Junior
(60-89 credit hours)
$5,500 $6,000 $12,500
Senior (and beyond)
(90+ credit hours)
$5,500 $6,000 $12,500

Graduate Students

Graduate students may not borrow more than $138,500 while earning their graduate degree(s).  Graduate students may consider the credit-based Federal Direct Graduate PLUS Loan if they need additional loan funds.

Graduate Students
Maximum Aggregate Limit for Graduate Students $138,500
Grade Level Unsubsidized Loan
Each Year of Graduate School $20,500

How to Apply

  1. File a FAFSA online at fafsa.gov. Once your file is complete, the Office of Financial Aid will send you a financial aid offer.
  2. To accept your student loans, log in to myWSU and select the myFinances Tab, then Financial Aid Awards link. You should borrow only what you need.
  3. If you are accepting subsidized and/or unsubsidized student loans for the first time, complete your Loan Agreement for a Subsidized/Unsubsidized Loan (MPN) and Loan Entrance Counseling at studentloans.gov.

Loan Entrance Counseling & Loan Agreement (MPN)

After you accept a Federal Direct Subsidized or Unsubsidized Loan as part of your financial aid, our office will continue the loan process by submitting the accepted Federal Direct Loan information to the Federal Common Origination and Disbursement (COD) system for origination.

However, for first-time borrowers, an entrance counseling session is required and a valid Loan Agreement for a Subsidized/Unsubsidized Loan (MPN) must also be on file with the COD before our office can make any Federal Direct Loan disbursements to students.

After you have successfully completed your entrance counseling session and Loan Agreement for a Subsidized/Unsubsidized Loan (MPN), any future Federal Direct Loan offers that you accept will be linked to your original, completed MPN. This MPN is valid for up to 10 years from the date the first loan disbursement was made.