Eligible law and graduate students may borrow up to $20,500 per academic year in the Federal Direct Unsubsidized Loan Program The maximum annual and aggregate loans a student can borrow depends on their program. Total aggregate borrowing in this program cannot exceed $138,500 for a graduate student, including any undergraduate borrowing.
The Federal Direct Loan Program sets interest rates on an annual basis and the rate assigned at disbursement is fixed for the life of the loan. Interest rates are fixed by the US Department of Education based on a rate formula that uses the “high yield of the 10 year Treasury Bill rate sold at the prior to June 1 plus factor (add-ins) points.” The rates are capped and cannot exceed the cap regardless of the formula results. Interest rates are set in June for loans disbursed on or after July 1. The below chart shows the rate formulas and caps.
|Loan Type||Rate Formula||Cap|
|Undergraduate Subsidized/Unsubsidized Loans||T-bill + 2.05%||8.25%|
|Graduate Unsubsidized Loans||T-bill +3.60%||9.50%|
|PLUS Loans (Graduate and Parent)||T-bill + 4.60%||10.50%|
The Federal Direct Unsubsidized Loan charges a fixed interest rate of 6.595% for loans disbursed July 1, 2018 to June 30, 2019 to graduate/professional students for the Federal Direct Unsubsidized Loan. All Federal Direct Unsubsidized Loans are charged a 1.066% origination fee from October 1, 2017 to September 30, 2018. The origination fee will be 1.062% for any Federal Direct unsubsidized loans disbursed on or after October 1, 2018.
Origination fees and interest rate formulas may change due to congressional action.
For the 2018-2019 academic year, all incoming students and new borrowers who want to apply for a federal loan must complete a Federal Direct Subsidized/Unsubsidized Loan Master Promissory Note (MPN) at https://studentloans.gov.
If you previously borrowed at Widener Law Commonwealth, your Federal Direct Subsidized/Unsubsidized MPN is valid for ten years and you authorize Widener Law Commonwealth to increase the aggregate loan amount each year. Please complete the box on Widener Law Commonwealth’s Institutional Data Form to provide that information.
The Financial Aid Office certifies our student’s request for Federal Direct Subsidized/Unsubsidized Loans electronically. If you have not completed your Direct Subsidized/Unsubsidized MPN at the time we certify your eligibility, you will be contacted to complete the process. If you have any concerns or want to personally notify us that you have completed the application, please feel free to contact us via email at the Financial Aid Office.