Undergraduate Federal Direct Student Loan Program
UIS participates in the Federal Direct Loan program, in which borrowers obtain loan funds directly from the U.S. Department of Education. No credit check is required. Students may apply by completing the Free Application for Federal Student Aid (FAFSA)®. To be eligible, students must be enrolled for at least six credit hours per semester.
First-time loan borrowers must complete the Federal Direct Loan Master Promissory Note and Loan Entrance Counseling found on the StudentAid.gov website. Repayment of Direct Loans is deferred while students are enrolled at least half-time.
Interest Rates and Origination Fees
| Loans First Disbursed | Undergraduate Subsidized & Unsubsidized |
| Interest Rates Between July 1, 2024 and June 30, 2025 | 6.53% |
| Interest Rates Between July 1, 2023 and June 30, 2024 | 5.50% |
| Origination Fees Between October 1, 2020 and before October 1, 2024 | 1.057% |
Federal Direct Subsidized Stafford Loan
A Federal Direct Subsidized Loan is awarded to undergraduate students to meet financial need after other resources are subtracted or to the annual maximum loan limit, whichever is lower. Interest is paid by the US Department of Education while a student is enrolled at least half-time and during the grace period. The annual limits vary based upon a student's grade level and dependent status, as shown below. There are also aggregate, lifetime borrowing limits.
Federal Direct Unsubsidized Stafford Loans
A Federal Direct Unsubsidized Loan is available for undergraduate students and is not based on financial need. . Students are charged interest on this loan from the time the loan is disbursed until it is paid in full. If the interest accumulates, it will be added to the principal amount of the loan and increase the amount to be repaid. The annual limits vary based upon a student's grade level and dependent status, as shown below. There are also aggregate, lifetime borrowing limits.
| Year | Dependent Students | Independent Students (and dependent students whose parents are unable to obtain PLUS Loans) |
|---|---|---|
| First-Year Undergraduate Annual Loan Limit | $5,500-No more than $3,500 of this amount may be in subsidized loans. | $9,500-No more than $3,500 of this amount may be in subsidized loans. |
| Second-Year Undergraduate Annual Loan Limit | $6,500-No more than $4,500 of this amount may be in subsidized loans. | $10,500-No more than $4,500 of this amount may be in subsidized loans. |
| Third Year and Beyond Undergraduate Annual Loan Limit | $7,500 per year-No more than $5,500 of this amount may be in subsidized loans. | $12,500-No more than $5,500 of this amount may be in subsidized loans. |
Accept/Reduce/Decline a Federal Direct Subsidized/Unsubsidized Loan
Loans will be offered to eligible students based upon grade level, financial need and cost of attendance limits. Students can accept or decline a Federal Direct Subsidized or Unsubsidized Loan on your electronic aid offer notification by selecting “Accept” or “Decline” in the drop-down box in Self-Service. You can reduce your loan by selecting “Modify” in the drop-down box and entering a lower loan amount in the “Modified Amount” field. If you wish to request loan changes, you should use the “Request Changes” on the Financial Aid Notification page.
A Master Promissory Note (MPN) and Entrance Counseling are required for Federal Direct Loans before the loan funds will be disbursed. In most cases, you will only be required to complete one MPN and complete one entrance counseling session during your college career.
Exit Loan Counseling
Students who withdraw from the university, graduate, or drop below half-time enrollment and have borrowed federal student loans must complete Student Loan Exit Counseling. This is a federal requirement. Failure to complete exit loan counseling may place a hold on the student account, preventing the student from registering for classes and obtaining a transcript.