Financial Aid

Federal Direct Student Loans

How to Apply

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.

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

Loan Details

A Direct Loan is a federal student loan with a fixed interest rate and origination fee. The 2024-2025 interest rate effective July 1, 2024 is 6.533% with an origination fee of 1.057%. 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.

Important Facts for Borrowers:

  • The average student Federal Direct Loan indebtedness for the graduating class of 2023 was $21,483. At a fixed interest rate of 5.0% and term of ten years, a direct loan borrower will
    - pay $228 per month and
    - pay $5,860 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.