Unsubsidized Stafford Loan
Federal Direct Stafford Loans are low-interest federal loans that are either subsidized or unsubsidized. You can receive both a subsidized and unsubsidized loan for the same enrollment period as long as the total does not exceed the allowable amount for your grade level.
The Unsubsidized Direct Stafford Loan is available to students who do not qualify for the subsidized loan, or dependent undergraduate students whose parents do not qualify for the Federal PLUS Loan. An unsubsidized loan is not awarded on the basis of need. You will be charged interest from the time the loan is disbursed until it is paid in full. If you pay the interest as it accrues, you will pay less in the long run.
The federal government established a customer service line dedicated to address the problems and concerns of borrowers. If you have questions, call the Direct Loans Borrower Customer Service number at 1-800-557-7394.
Annual Loan Limits
Drexel recommends loan limits of smaller amounts in the freshman and sophomore years to preserve a student's ability to borrow in the fifth year.
Note: Undergraduates are eligible for an additional $2,000 in unsubsidized Stafford Loan funding as a result of HR5715.
Limits for Dependent Students
- Freshmen $3,500
- Sophomores $4,500
- Juniors and seniors $5,500
- Graduate students $12,000
- First-year medical students $32,222
- Second-year medical and Program for Integrated Learning (PIL) students $34,445
- Third-year medical students $36,667
- Fourth-year medical students $34,445
Extended Limits for Independent Students
Limits for students who are independent under federal guidelines or whose parents are ineligible for a PLUS Loan are eligible for additional unsubsidized amounts.
- Freshmen/sophomores: up to $4,000 in additional unsubsidized loans
- Juniors/seniors: up to $5,000 in additional unsubsidized loans
- Graduate students: up to $20,500 ($8,500 subsidized and $12,000 unsubsidized)
Graduate students who are not eligible for a subsidized Stafford Loan can borrow up to $8,500 in additional unsubsidized amounts.
Cumulative Loan Limits
- Maximum of $23,000 as an undergraduate; however, an additional $8,000 in unsubsidized funding is available as a result of HR 5715
- Maximum of $138,500 for graduate students, including undergraduate loans
- Maximum of $224,000 for medical students, including undergraduate and graduate loans
- Currently, the interest rate is fixed at 6.8 percent
- Interest begins to accrue from the time the loan is disbursed
- Currently, the origination fee can be up to 1 percent of the loan amount
- At the beginning of each term of enrollment, including co-op
- The student is responsible for repayment
- The length of repayment is 10 years, but may be extended to 25 years
- Repayment begins six months after graduation, withdrawal from the University, or cessation of at least half-time enrollment
- Repayment can be deferred if you return to school at least half-time and for certain other circumstances
- Graduated, income-sensitive, and extended repayment options available
- Interest accrued on unsubsidized loans during the in-school period may be paid monthly or capitalized
How to Apply
You are automatically considered for Stafford Loans if you file the FAFSA.
When your eligibility has been determined, you will be notified to go online
to sign the promissory note.
Master Promissory Note
A signed Master Promissory Note (MPN) is required to be submitted only once
and remains valid for up to 10 years. The Stafford Loan is thus renewed automatically
for eligible returning students, and will be confirmed each year by a Statement
of Disclosure sent to you from your lender. First-time Direct Loan borrowers
will receive instructions to electronically sign an MPN after July 1.