Direct Subsidized Loans and Direct Unsubsidized Loans are federal loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of their higher education. Students must file a FAFSA each year to be eligible to borrow through the Federal Direct Student Loan Program.
Loan amounts vary based on the student’s year in school. The interest rate for loans disbursed on or after July 1, 2025 is fixed at 6.39%. The lender charges a 1.057% origination fee to process the loan.
Wabash automatically incorporates a student’s full Federal Direct Student Loan eligibility into their financial aid package each year that the FAFSA is filed. Students who choose to utilize their Federal Direct Loan must complete the following prior to receipt of their first loan:
- Sign their Master Promissory Note (MPN), agreeing to the terms of the loan
- Complete Entrance Counseling, to ensure the student understands their obligation to repay the loan
Students who do not wish to utilize their Federal Direct Student Loan eligibility can decline their loan(s) each year via their Wabash Self-Service account.
There are two types of Federal Direct Student Loans, subsidized and unsubsidized.
- Subsidized - This type of Federal Direct Loan is need-based. The government pays the interest on this type of loan while the student is in school, during the six-month grace period, and during eligible deferment periods.
- Unsubsidized - This type of Federal Direct Loan is not need-based. The student is responsible for all of the interest that accrues on the loan, including while the student is in school.
Principle payments are deferred until six months after the student ceases to be enrolled at least half time
亚洲通 encourage students to be informed borrowers. Please review your Student Rights & Responsibilities Under the Federal Direct Loan Program.