Federal Direct Unsubsidized Loan
U.S. Citizens and Permanent Residents are automatically eligible for consideration of the Federal Direct Unsubsidized Loan. You may borrow up to $20,500 per academic year. The fixed interest rate for the 2022-2023 academic year is 6.54% and carries a 1.057% origination fee for loans first disbursed on or after October 1, 2021.
Federal Graduate PLUS Loan
The Graduate PLUS Loan is an additional federal loan that students can borrow for up to the cost of attendance, less any other financial aid. Acceptable credit history is required. The fixed interest rate for the 2022-2023 academic year is 7.54%, and carries a 4.228% origination fee for loans first disbursed on or after October 1, 2021.
Federal Loan Characteristics
Federal Direct Unsubsidized Loan
Graduate PLUS Loan
|6.54% (fixed)||7.54% (fixed)|
|1.057% (for loans disbursed after October 1, 2021)||4.228% (for loans disbursed after October 1, 2021)|
|Interest begins accruing on this loan as soon as the funds are disbursed to the University.||Interest begins accruing on this loan as soon as the funds are disbursed to the University.|
|Students must complete a FAFSA Application, and a loan form requesting the funding.||Along with completing the FAFSA application, students additionally complete a credit authorization form.|
|Maximum Loan Amount: $20,500 per academic year.||Students can apply for a loan up to the full cost of attendance, less any other financial aid received.|
Frequently Asked Questions
How do I apply for federal loans?
To initiate the federal loan process, students should first complete a FAFSA application. Upon completing a FAFSA application, U.S citizens and eligible non-citizens are automatically eligible for the Federal Direct Unsubsidized Loan in the amount of $20,500 for the academic year. To request this loan, students are asked to complete a Direct Loan Request Form. Should students wish to borrow an additional federal loan, students additionally have the option to apply for a Graduate PLUS Loan which can be applied towards up to the remaining cost of attendance (less any existing loans/scholarships, etc.) Admitted students will receive links to these Request Forms.
Am I required to make payments towards my federal loans while I'm in school?
The federal government defers repayment on student loans until six months after a student graduates, or if a student's enrollments falls below six credits.
What is SOM's FAFSA code?
The school code for Yale is 001426.
What is an origination fee?
An origination fee is a non-refundable fee kept by the lender. For federal loans, the fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow; however, you’re still responsible for repaying the entire amount you borrowed and not just the amount you received. The origination fee for the Federal Direct Unsubsidized loan is 1.057% for loans disbursed on or after October 1, 2021. The origination fee for the Graduate PLUS Loan is 4.228% for loans first disbursed on or after October 1, 2021.
Do my federal loans accrue interest while I'm in school?
Yes, all federal and private student loans will accrue interest while you're in school; there aren't any subsidized loans offered for students at the Graduate Level.
What are the interest rates on federal loans? Are they fixed or variable?
Federal Direct Unsubsidized Loan: The fixed interest rate for the 2022-2023 academic year is 6.54%, and carries a 1.057% origination fee for loans first disbursed on or after October 1, 2021.
Graduate PLUS Loan: The fixed interest rate for the 2022-23 academic year was 7.54%, and carries a 4.228% origination fee for loans first disbursed on or after October 1, 2021.
When am I required to make payments towards my federal student loans?
For both federal student loan types, students have a six month grace period after graduation (or if you are in a ‘less than half-time status while in school) before they are required to enter into repayment.
What type of repayment plans are offered for federal loans?
Students borrowing federal loans are automatically opted into the 'Standard Repayment Plan' in which your payments are a fixed amount that ensures that your loans are paid off within ten years. The federal government does offer various different types of repayment plans, however, that may better suit your needs.