MBA Finances

Federal Loans FAQ's

What is the current interest rate on the loans?

Loan Type	Fixed Interest Rate
Direct Subsidized Loan	6.8%
Direct Unsubsidized Loan	6.8%
Direct Grad PLUS Loan	7.9%

Interest on the Subsidized Loan is paid for by the government while you are enrolled at least half-time (6 units), during your 6 month grace period and during periods of deferment.

Interest on the Unsubsidized Loan and the Grad PLUS Loan begins accruing from the date of disbursement (only on the amount that has been disbursed). While you are responsible for the interest at all times, you can choose to not make interest payments while in school and instead have the interest accrue. The interest accrual is simple interest---it is not compounded (or capitalized) until just before entering repayment.