Federal Direct Student Loans

Direct Subsidized Loan

• Need-based federal loan.
• Principal and interest payments are deferred while enrolled at least half-time.
• Students will automatically be offered a subsidized loan if they are eligible.
  

Direct Unsubsidized Loan

• Available to students who do not qualify for all or part of a subsidized loan.
• Principal payments are deferred while enrolled at least half-time.
• Interest accrues during enrollment.
• Students may pay the interest as it accrues or allow it to be added to the loan balance.

Loan Details

• Federal student loans with a 6.52% fixed interest rate and 1.057% origination fee (for 2026-27)
• Eligibility and loan amounts are determined through the FAFSA.
• The Financial Aid Office will notify students of their eligibility and award amount.
• Repayment begins six months after graduation or when enrollment drops below half-time (defined at Union as two credit-bearing classes in a term).
• If you filed a FAFSA but were not offered a Direct Loan, please contact the Financial Aid Office

Changes to federal student loans for 2026-27 related to the One Big Beautiful Bill Act signed into law July 2025

• Beginning July 1, 2026, federal student loan amounts will be reduced for students who are enrolled less than full time (full time is 3 credit-bearing classes per term). Students must be enrolled in a minimum of 2 credit-bearing classes each term to qualify for federal loans.
• Students should plan their schedules carefully starting the 2026-27 academic year and connect with your academic advisor if you need to drop a course any time throughout your term, as withdrawing from a course may result in prorated loan charges. If you are a full-time student and drop below 3 classes, your loan will be prorated (reduced based on your course load) and may result in an outstanding balance on your tuition account.

Next Steps

Union Students Who Have Previously Borrowed a Federal Direct Loan:

1. Log in to Financial Aid Self Service and either Accept or Reject your offered loans by selecting 'My Awards' from the Financial Aid tab.
2. You do not need to complete a new Direct Loan Master Promissory Note or entrance counseling session.

First Time Federal Direct Loan Borrowers and transfer students new to Union:
In order for the Direct Loan(s) to be processed you must complete the following steps.

1. Accept or reject the offered loan(s) through Financial Aid Self Service by selecting 'My Awards' from the Financial Aid tab. If you are accepting the loan(s), continue to step 2.
2. Complete the (a) Direct Loan Master Promissory Note (Sign Loan Agreement) and (b) Entrance Counseling by logging in to the Federal Student Aid website using your student FSA ID and password. Links to both requirements can be found under the 'Complete Aid Process' drop down menu.

Important Facts for Borrowers:

• The average student Federal Direct Loan indebtedness for the graduating class of 2025 was $21,625. At a fixed interest rate of 6.0% and term of ten years, a direct loan borrower will
  - pay $240 per month and
  - pay $7,185 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 classes per term
  -Students who drop below two classes 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.