Federal Direct Loan Terms and Conditions
Interest Rates
Undergraduate Student Borrowers:
- 6.8% fixed interest rate for Federal Direct Subsidized Student Loans first disbursed on or after July 1, 2013
- 6.8% fixed interest rate for Federal Direct Unsubsidized Student Loans first disbursed on or after July 1, 2013
Graduate and Professional Student Borrowers:
- 6.8% fixed interest rate for Federal Direct Unsubsidized Student Loans first disbursed on or after July 1, 2013
Origination Fee
- For both Federal Direct Subsidized and Unsubsidized Loans where the first disbursement occurs on or after July 1, 2013 a 1.051% Origination Fee is assessed, per the federal government's Budget Control
Act of 2011.
Repayment
- 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 attendance during an academic term.
- For Federal Direct Subsidized Loans disbursed on or after July 1, 2013 and before July 1, 2014, the interest subsidy is eliminated during the grace period. If the borrower does
not pay 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 a student borrows a Federal Direct Loan, he or she must contact our if they:
- Drop below half-time attendance 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.