Office of Student Financial Assistance

Federal Direct Subsidized and Unsubsidized Loan Terms and Conditions

Interest Rates

Undergraduate Student Borrowers:

  • 5.50% fixed interest rate for both Federal Direct Subsidized and Unsubsidized loans first disbursed on or after July 1, 2023.

  • 6.53% fixed interest rate for both Federal Direct Subsidized and Unsubsidized loans first disbursed on or after July 1, 2024.

Graduate and Professional Student Borrowers:

  • 7.05% fixed interest rate for Federal Direct Unsubsidized loans first disbursed on or after July 1, 2023.

  • 8.08% fixed interest rate for Federal Direct Unsubsidized loans first disbursed on or after July 1, 2024.

Origination Fee

  • The origination fee is a percentage of the loan amount which is deducted proportionally each time a disbursement is made. This means the disbursed amount will be less than the amount accepted. Students are responsible for repaying the entire amount they borrowed, and not just the amount they received.
First Disbursement Date Origination Fee
On or after Oct. 1, 2019 and before Oct. 1, 2020 1.059%
On or after Oct. 1, 2020 and before Oct. 1, 2024 1.057%

Repayment for Federal Direct Subsidized and Unsubsidized Loans

  • Repayment on a Federal Direct loan begins after the student's 6 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 begins to accrue after the 6 month grace period. Note: Federal Direct Subsidized loans disbursed between July 1, 2012 to June 30, 2014 are ineligible for the interest subsidy during the grace period. Students are responsible for the interest. If students choose not to pay the interest that accrues during the grace period, the interest will be added to the principal balance of the loan.
  • Choose a payment plan that best fits your needs when you enter repayment.

When students borrow a Federal Direct Loan, they must contact the Office of Student Financial Assistance 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.