Federal Direct Student Loans
Need a loan to help pay for college? The Federal Direct Loan program provides low-interest educational loans to degree seeking students enrolled at least half-time. Learn more about subsidized and unsubsidized loans here.
The Federal Direct Loan program provides low-interest educational loans to degree seeking students enrolled at least half-time. There are two different types of Federal Direct loans:
- Subsidized: The federal government pays the interest while the student is in school and during the six-month grace period. This loan is not available to graduate students.
- Unsubsidized: Interest accrues while a student is in school and during the grace period.
Traditional & Adult Undergraduate Students Only
Direct Subsidized Loan
This loan is awarded to students who demonstrate financial need as determined by the FAFSA. The federal government pays interest on this loan while the student is enrolled in school, at least half-time and pursuing a degree or certificate. The fixed interest rate for the life of the loan is based on the date of the first disbursement. Origination fees are subtracted from the loans by the federal government. Loan funds (without the fees) are evenly split between the terms of enrollment and are disbursed directly to the student’s Northwestern account.
Traditional, Adult Undergraduate, Online & Graduate Studies
Direct Unsubsidized Loan
This loan is non-need based and the student borrower is responsible for the interest which accrues on the loan while enrolled and prior to repayment. The student may choose to make interest payments during the in-school period or capitalize the unpaid accrued interest when repayment begins.
Interest Rates, Fees, and Disbursement
View Interest rates and loan fees for Federal Direct Loans. Origination fees are subtracted from the loans by the federal government. Loan funds (without the fees) are evenly split between the terms of enrollment and are disbursed directly to the student’s Northwestern account.
Loan Authorization Instructions
If you have been awarded a Federal Direct Loan, please follow these steps to accept the award:
- Log on to theROCK (only current students can log in with their username and password)
- Under "Student Services", select Financial Aid, and then under "Resources", select View your Financial Aid
- Select Aid Year and Submit
- Under "Accept Award Offer" tab accept, change amount, or decline loans.
- Complete additional loan requirements defined below if they apply to you.
If you are accepting the Federal DL Loan (Subsidized and/or Unsubsidized) at Northwestern, you must go to https://studentaid.gov - Login with FSA ID, under Complete Aid Process select and complete both "Subsidized/Unsubsidized Loan MPN” and "Complete Entrance Counseling".
Other Loan Options: Review private loan options at: unwsp.edu/loans
A Federal Direct Loan is a long-term, fixed rate loan for students or parents of students. Eligibility is determined by completing a Free Application for Federal Student Aid form (FAFSA). Students must be enrolled at least half-time (6 credits) to be eligible to receive a Federal Direct Loan. Repayment on the Federal Sub and/or Unsub loan begins six months after a student graduates or drops below half-time enrollment. Repayment on the Federal PLUS Parent loan begins 60 days after the entire loan is disbursed to the student’s account, but a parent does have the option to defer loan payment until after the student graduates or drops below half-time enrollment. The current interest rates and loan fees for Federal Direct Loans are available at https://studentaid.gov/understand-aid/types/loans/interest-rates.