Important Facts for Borrowers:

  • The average student Direct Loan indebtedness for the graduating class of 2014 was $21,707.  At a fixed interest rate of 6.8% and term of ten years, a direct loan borrower will
    - pay $250 per month and
    - pay $8,270 in interest over the life of the loan.
  • Students must be enrolled at least half-time to be eligible for Direct Loans.
    -Half-time at Union College is defined as two credits per term
    -Students who drop below two credits in a term will enter their six-month grace period
  • If a student decides to withdraw prior to completing their program of study, they must contact the Dean of Students Office.

Federal Direct Student Loans

A Direct Loan is a federal student loan with a fixed interest rate and origination fee. The current interest rate is 4.66% with an origination fee of 1.072%. There are two types of Direct Loans, subsidized and unsubsidized. To determine eligibility and loan amounts, students must complete and submit the Free Application for Federal Student Aid (FAFSA).  The Financial Aid Office will notify students of their eligibility and the loan amount(s) they qualify for.  Repayment begins six months after the student graduates or drops below half-time enrollment.

Direct Subsidized Loan
A need-based loan program.  Both principle and interest are deferred while the student is enrolled at least half-time.

Direct Unsubsidized Loan
Students who do not qualify for all or part of the need-based subsidized Direct Loan may borrow the unsubsidized Direct Loan.  The principle of the unsubsidized loan is deferred while the student is enrolled at least half-time. However, the federal government does not make the interest payments on the unsubsidized loan.  Students may choose to make interest payments on the loan or allow the interest to accrue.   

Please note: If you filed a FAFSA but were not offered a Direct Loan, please contact the Financial Aid Office. 

Current Students Who Have Previously Borrowed a Federal Direct Loan
Direct Loan eligibility will be indicated on your 2013-14 financial aid award, which is available in the Financial Aid section of your WebAdvising account.  You must accept or reject the offered Direct Loan(s) in WebAdvising by selecting the "Accept or Reject My Loans."  You do not need to complete a new Direct Loan Master Promissory Note or entrance counseling session.

First Time Federal Direct Loan Borrowers
If you were offered a Direct Loan as part of your financial aid award, you will be mailed instructions prior to the fall term explaining how to accept or decline your Direct Loan(s) through Union College's WebAdvising system.

In order for the Direct Loan(s) to be processed you must complete the following steps:

  1. Accept the offered loan(s) through WebAdvising by selecting "Accept or Reject My Loans" in the Financial Aid section. 

  2. Complete a Direct Loan Master Promissory Note (MPN).

    -Go to and sign in using your Federal Student Aid PIN (the same PIN used to sign your FAFSA). Click here if you have forgotten your PIN or need to request one.

  3. Complete a Direct Loan Entrance Counseling session online after signing the MPN at