Money Sign IconFederal Direct UNSUBSIDIZED LOAN

 

DEFINITION

A Direct Unsubsidized Loan is a non-need-based loan and is available to undergraduate and graduate students. Students are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. You may choose to pay the interest on your Unsubsidized Loans while you are in school and during grace periods and deferment or forbearance periods. If you do not pay the interest while in school, during grace periods, and deferment or forbearance periods, then your loan interest will accrue and be capitalized.

Current Interest RATE

  • The interest rate for loans first disbursed on or after July 1, 2016 and before July 1, 2017 is 3.76%.
  • The interest rate for loans first disbursed on or after July 1, 2017 and before July 1, 2018 is 4.45%.

To view interest rates on your previous subsidized loans, go to https://www.nslds.ed.gov/nslds_SA/.

Origination FEE

An origination fee will be deducted from a subsidized loan before it is disbursed. The origination fee on a subsidized loan first disbursed on or before September 30, 2015 is 1.073%, and loans first disbursed on or after October 1, 2015 have an origination fee of 1.068%.

How to APPLY

  • To receive a Direct Unsubsidized Loan, you must first complete the FAFSA.
  • Additionally, you must complete any other required items, which could include verification. These required items can be viewed in your myUVU student account. Log in to myUVU, go to Students, Paying For My Education, My Financial Aid Requirements, select the appropriate Aid Year.

Basic ELIGIBILITY

  • You must be enrolled in at least 6 eligible credit hours if an undergraduate, 4.5 eligible credit hours if a graduate (waitlist hours, audited courses, courses that are not needed to complete your academic program, and some repeated courses are not considered eligible credit hours).
  • You may not exceed your Direct Loan Aggregate Loan Limits. To view your Direct Unsubsidized Loan information, log into www.nslds.ed.gov with your FSA ID.

AWARDING

If eligible, undergraduate and graduate students will be awarded a Direct Unsubsidized Loan according to the annual and aggregate loan amounts that are set by the U.S. Department of Education. You will be awarded the maximum amount that you are eligible not to exceed your Cost of Attendance. See the Annual Direct Loan Amount Chart below.

ONCE AWARDED, YOU MUST MEET OR COMPLETE THE FOLLOWING BEFORE YOUR LOAN CAN DISBURSE:

  • Accept your loans in your myUVU student account confirming that you want the loan. To view and accept your award, log in to myUVU, click on Students, Paying For My Education, My Financial Aid Awards, Select the appropriate Aid Year, Terms and Conditions, Accept Award Offer.You must accept your loan for each semester in which you would like to receive a loan. You do not have to accept the full amount of your loans, you may choose how much of each loan you receive for each semester.
  • If necessary, you will need to complete entrance counseling. This can be completed approximately three business days after you accept your loans and are registered for classes. You complete entrance counseling at www.studentloans.gov.
  • If necessary, you must e-sign a Master Promissory Note at www.studentloans.gov. This can be completed approximately three business days after you accept your loans and are registered for classes.
  • You must be enrolled in at least 6 credit hours for undergraduate or 4.5 hours for graduate (waitlist hours, audited courses, courses that are not needed to complete your academic program, and some repeated courses are not considered eligible credit hours).
  • You must complete all Financial Aid Requirements listed in your myUVU student account. Log in to myUVU, go to Students, Paying For My Education, My Financial Aid Requirements, select the appropriate Aid Year.

DISBURSEMENT

After you are awarded, and if you have met and completed all eligibility requirements, including entrance loan counseling and signing a Master Promissory note, your Direct Subsidized Loan will be sent electronically to the Bursar's Office no sooner than ten days prior to the first day of your enrolled classes.

Your loan will first pay your outstanding tuition and fees and, if authorized by you, any other institutional charges. After this balance is paid, and if there is any excess federal student aid, the Utah Valley University Bursar's Office will refund the monies to you either by check through the U.S. Postal Service to the local address listed in your myUVU student account (this is the default method), or through direct deposit (which you may set up in your myUVU student account). If mailed, please allow 3-5 business days for the refund to be processed.

The Utah Valley University Financial Aid and Scholarships Office and Bursar's Office process federal student aid disbursements and refunds every business day. This refund money may be used for educational purposes and to pay the cost of attending Utah Valley University.

Continued ELIGIBILITY

  • You must complete a new FAFSA and other application requirements each award year. For more information on the application process, visit our Need to Complete your FAFSA? webpage.

You must meet all other eligibility requirements. Please visit the Federal Student Aid Eligibility webpage.

  • You may not exceed your Direct Loan Aggregate Loan Limits. To view your Direct Unsubsidized Loan information, log into www.nslds.ed.gov with your FSA ID.

How to CANCEL or DECREASE the Amount of a Direct Unsubsidized Loan

If you choose to cancel all or part of your loan before your loan pays onto your student account: you must complete a Loan Cancellation Request Form and upload it to the Financial Aid and Scholarships Office.

If you choose to cancel all or part of your loan after the your loan have paid onto your student account: you must upload a completed Loan Cancellation Request Form to the Financial Aid and Scholarships Office and return the funds to the Cashiers Office.

If 120 days have elapsed since your loan was disbursed, the funds cannot be returned to the school and must be returned directly to your loan servicer.

Exit Loan COUNSELING

You must complete exit counseling before you withdraw, graduate, or drop below half-time enrollment (6 credit hours for undergraduate and 4.5 credits for graduate - waitlist hours, audited courses, courses that are not needed to complete your academic program, and some repeated courses are not considered eligible credit hours) even if you plan to transfer to another school. Exit counseling helps you understand your rights and responsibilities as a student loan borrower and provides useful tips and information to help you manage your loans. Exit counseling may be completed at www.studentloans.gov.

To view a PDF version of the Exit Counseling Guide for Federal Student Loan Borrowers visit https://studentaid.ed.gov/sa/sites/default/files/loan-exit-counseling.pdf.

REPAYMENT

For information about Repayment, view the Loan Repayment webpage or https://studentaid.ed.gov/sa/repay-loans.

To Whom Your Federal Student Aid Information is SENT

The Financial Aid and Scholarships Office will send your Federal Pell Grant and Federal Loan information to the U.S. Department of Education. This information is then included in the National Student Loan Data System (NSLDS) and is accessible to you and authorized agencies, lenders, servicers, and institutions. You can view your complete Federal Loan and Pell Grant history in the National Student Loan Data System at www.nslds.ed.gov.