Federal Direct loans

Federal Direct Subsidized and Unsubsidized loans are the most common forms of education funding as well as being one of the lowest in cost.

  • Interest rate is fixed.
  • Available to students attending at least half time.
  • Loan fee deducted prior to disbursement.

Subsidized loans

This loan is for undergraduates and is less expensive to borrow than the unsubsidized loan. The government pays the interest while you are in school at least half time and during a six-month grace period. To receive a subsidized loan, you must be able to demonstrate financial need as determined by filing the FAFSA.

Unsubsidized loans

This loan does not qualify for a federal interest subsidy - you are responsible for all the interest. You can have the payments delayed until after graduation. If you go this route, the interest will then be added to the loan balance thus increasing the size and cost of the loan.

  • The unsubsidized loan is available to all students regardless of financial need.
  • A FAFSA is required every year you want to borrow.

Interest rates and loan fees

The loan fee for loans first disbursed on or after October 1, 2020 and before October 1, 2024 is 1.057%.

Loan Type


Interest rate for loans first disbursed 7/1/2023-6/30/2024

Interest rate for loans first disbursed 7/1/2024-6/30/2025

Federal Direct Subsidized Loan


5.50% fixed

6.53% fixed

Federal Direct Unsubsidized Loan


5.50% fixed

6.53% fixed

Federal Direct Unsubsidized Loan


7.05% fixed

8.083% fixed

Before you borrow

When making decisions on loan borrowing, it is important to consider your loan repayment.

Federal Loan Repayment Calculators

Federal Direct loan master promissory note

A promissory note lists the terms under which you are borrowing and agree to pay back a loan.

Sign your Direct loan promissory note

Select Wayne State University as your school.

As a Federal Direct Loan borrower, you must sign a Master Promissory Note (MPN) before your loan can be disbursed.

  • The Federal Direct Loan MPN is valid for 10 years.
  • You only have to sign a Loan MPN once while enrolled at Wayne State University.
  • Complete a Direct Loan MPN at studentaid.gov/mpn/.
  • You will need the FSA ID that you used to file your FAFSA.