UW Colleges Financial Aid
Direct Subsidized/Unsubsidized Loan Program
All students who complete the Free Application for Federal Student Aid (FAFSA) and are eligible to be considered for financial aid may receive a Federal Direct Loan award(s) on their Financial Aid Award Offer. These loans may be Direct Subsidized, Direct Unsubsidized, or a combination of both. As they are loan funds and represent borrowing, they must be repaid by the student.
A student's eligibility is determined by the FAFSA, the school's total cost of attendance, and other financial aid resources. To receive Direct Subsidized and/or Unsubsidized Loan funds, a Direct Loan award must be accepted by the student on a UW Colleges Financial Aid Award Offer. Also, Direct Loan Entrance Counseling and a Direct Loan Master Promissory Note must be completed as part of the loan application process.
New! All Federal Direct Loans disbursed on/after July 1, 2012
will have an increased Origination Fee.
The Budget Control Act of 2011, signed into law on
August 2, 2011, eliminated the upfront rebate for all Federal Direct Loans. Starting July 1, 2012, Federal Direct Subsidized and Unsubsidized Loan
disbursements will have a 1% origination fee.
Direct Subsidized Loan
The federal government pays the interest on this loan while you are in school at least half time, during your six-month grace period after you leave school, and during any deferment periods. You must have financial need to qualify for this type of loan.
Direct Unsubsidized Loan
Financial need is not required to receive this loan. You will be charged interest on the loan from the time it is disbursed until it is paid in full. You may pay the interest on the loan while in school or allow the interest to be capitalized (added to the loan principal). Capitalizing the interest will increase the amount that you will repay over the life of the loan. We encourage you to make quarterly interest payments, if possible.