Federal Direct Subsidized and Unsubsidized Loans

In addition to filing the Free Application for Federal Student Aid (FAFSA), you must complete the Direct Loan Master Promissory Note (MPN) in order to receive Federal Direct Loans.  In addition to your MPN, your financial aid file must be complete and you must have completed your Entrance Counseling in order for Wagner to process your Direct Loan(s).

In most cases, your loan funds will be disbursed to the school electronically in two installments.
There are origination fees associated with Direct Loans. As a result, the amount of money applied to your tuition account will typically be a percentage of the gross amount borrowed.

Two types of Federal Direct Loans are offered: subsidized and unsubsidized.  A subsidized loan is offered to students who have calculated financial need; they are not available to graduate students. "Subsidized" means that the students are eligible to have the federal government pay the interest on the loan until repayment of the loan begins. The principal amount is due to be repaid beginning six months after you drop below half-time status, leave school or graduate. You will be responsible for interest immediately after you drop below half-time status or graduate. An unsubsidized loan is available to a all qualifying students, students who do not qualify for a subsidized loan, a student whose parent has been denied a PLUS or an independent/graduate student. These students are responsible for paying the interest  on their loan from the time the loan is disbursed until it is paid in full. (A student may elect to have his/her interest capitalized which may be more expensive than paying the interest while in school.) Otherwise, the terms of the loan are the same as that of a subsidized loan.

Important information regarding Federal Direct Loan subsidies and time limits may be found here.

Wagner's Direct Loan default rate remains low year after year.  Want to see how we compare to other schools?