Federal Direct Subsidized and Unsubsidized Loan Terms and Conditions
Undergraduate Student Borrowers:
- 3.86% fixed interest rate for both Federal Direct Subsidized and Unsubsidized loans first disbursed on or after July 1, 2013
Graduate and Professional Student Borrowers:
- 5.41% fixed interest rate for Federal Direct Unsubsidized loans first disbursed on or after July 1, 2013
- For both Federal Direct Subsidized and Unsubsidized loans where the first disbursement occurs on or after July 1, 2013, an origination fee of 1.051% 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.