A Federal Direct Unsubsidized Stafford Loan is not based on financial need. It is available to you if you have not reached your annual maximum loan limit combined with your Federal Direct Subsidized Stafford Loan eligibility.
The interest rate for Federal Unsubsidized Stafford Loans is variable and changes every July 1st. The interest on an Unsubsidized Stafford Loan is your responsibility from the time the loan funds are sent to the university until it is paid in full. You can opt to allow the interest to accumulate; however, it will be added to the principal amount of the loan and increase the amount to be repaid. If possible, it is recommended that you contact the lender to make quarterly payments on the interest.
There is also an origination fee that will be deducted before the loan proceeds are sent to the school. The origination fee is a processing fee assessed by the Department of Education. Repayment of the loan begins six months after you are no longer enrolled at least half time (six credits).
Students must accept their Federal Direct Unsubsidized Stafford Loan online via their myUMBC account before it can be considered as payment toward the bill. For more information on how to accept the loans online, please visit our Loan Acceptance page.
Stafford Loan Eligibility Requirements
- You must be working toward a degree or approved certificate at UMBC
- You must be meeting Satisfactory Academic Progress (SAP) standards
- You must be enrolled for at least six credits each semester
- A current year FAFSA is required
- If the FAFSA is selected for verification, all required documents must be submitted and reviewed before the loan can be processed
Apply for a Federal Direct Unsubsidized Stafford Loan
If you are eligible for a Federal Direct Unsubsidized Stafford Loan, it will be included in their financial aid award package.
First-Time Stafford Loan Borrowers
- Step 1 – Accept the Stafford Unsubsidized Loan online via your myUMBC account.
- Step 2 – Complete a Federal Direct Stafford Loan Master Promissory Note (MPN).
- Step 3 – Complete the Stafford Loan Entrance Counseling.
In most cases, you will only be required to complete the Master Promissory Note (MPN) and Entrance Counseling once during their college career.
Prior Stafford Loan Borrowers
Loan Application Deadlines
Reduce or Cancel a Federal Direct Unsubsidized Stafford Loan
You must accept some or all of your Subsidized Stafford Loan, if offered, before considering your Unsubsidized Stafford Loan. You may reduce or cancel an Unsubsidized Stafford Loan online via your myUMBC account if it has not yet disbursed. If the loan has already disbursed, you should complete the Loan Decrease/Cancel Request Form no later than 14 days after you receive the disbursement notification.
It is best to make the adjustments online or submit the form to our office for processing well before the funds are set to disburse to your billing account in order to avoid complications with the return of these funds.
Federal Direct Student Loan Disclosure Statements
Students receiving a Federal Direct Loan will receive a Disclosure Statement from the Federal Loan Origination Center for each new loan. The disclosure statement will provide comprehensive information about the types of loans, loan amounts, the loan period, and anticipated disbursement dates. Save every Disclosure Statement for reference.