Parent Fafsa Refusal Form (Page 2 of 2) in pdf

Description of the Federal Direct Unsubsidized Student Loan Program

Unsubsidized Direct Student loans accrue interest from the time the unsubsidized loans are disbursed until

they are paid in full. You can pay the interest or allow it to accrue (accumulate) and be capitalized (that is,

added to the principal amount of the loan). Capitalizing the interest will increase the amount owed.

After you graduate, leave school, or drop below half-time enrollment, you will have a six-month "grace

period" before you begin repayment. During this period, you'll receive repayment information, and you'll be

notified of your first payment due date. You are responsible for beginning repayment on time, even if you

do not receive this information. Payments are usually due monthly. During the grace period on an

unsubsidized loan, you do not have to pay any principal, but interest will continue to accrue. You can either

pay the interest or it will be capitalized (added to your principal loan balance, thus increasing the amount you

will repay).

In addition to charging interest on the loan, the U.S. Department of Education, as the lender, takes a loan

Origination Fee of 1 to 2 percent of the loan, deducted proportionately from each loan disbursement.

For more information on Federal Direct Unsubsidized Loans, including current interest and Origination Fee

rates, repayment plans, cancellations, and deferments, see

unsubsidized

ANNUAL DIRECT STUDENT LOAN LIMITS FOR DEPENDENT STUDENTS

Student Academic Level

Unsubsidized Loan Limit

Freshman (0-29 earned units)

$5,500*

Sophomore (30-59 earned units)

$6,500*

Junior and Senior (60 or more earned units)

$7,500*

*Annual Direct Unsubsidized Loans and other aid also cannot exceed the student’s Cost of Education budget.

Parent Fafsa Refusal Form Page 2