Federal Direct Subsidized and Unsubsidized Loan Terms and Conditions

Interest Rates

Undergraduate Student Borrowers:
  • 4.66% fixed interest rate for both Federal Direct Subsidized and Unsubsidized loans first disbursed on or after July 1, 2014
Graduate and Professional Student Borrowers:
  • 6.21% fixed interest rate for Federal Direct Unsubsidized loans first disbursed on or after July 1, 2014

Origination Fee

  • For both Federal Direct Subsidized and Unsubsidized loans where the first disbursement occurs on or after July 1, 2014, an origination fee of 1.072% of the loan amount is deducted proportionally each time a loan disbursement is made.

Repayment for Federal Direct Subsidized and Unsubsidized Loans

  • Repayment on a Federal Direct loan begins the day after the student's six-month grace period has expired. The grace period begins when a student graduates, withdraws, or drops below half-time enrollment during an academic term.
  • Interest on Federal Direct Subsidized loans starts when a student enters his or her grace period. If the student-borrower does not pay the interest during the grace period, the accrued interest will be capitalized (added to the principal balance of the loan).
  • Students choose a payment plan and find out how and when to repay loans.
When students borrow a Federal Direct Loan, they must contact the OSFA if they:
  • Drop below half-time enrollment during an academic term.
  • Withdraw from Kansas State University.
  • Stop attending all scheduled courses.
  • Do not enroll for any academic term.
  • Change their expected date of graduation.
  • Change their name, local address, permanent address, or email address.