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

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. Note: there is a time limit on how long you can receive loans.

Time limitation on Direct Subsidized Loan eligibility

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.

Interest rates and loan fees

Loan Type


First disbursed


Federal Direct Subsidized Loan


2.75% fixed

Federal Direct Unsubsidized Loan


2.75% fixed

Federal Direct Unsubsidized Loan


4.30% fixed

  • The loan fee for loans first disbursed on or after October 1, 20120 and before October 1, 2021 is 1.057%.

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

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. 

Loan reporting

Federal loan information is submitted to the National Student Loan Data System (NSLDS). It will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.