I transferred to UMass Lowell and filed a FAFSA. I just saw my online student account and under the “Financial Aid” section, I see “FedDirectLoanUnsubsidized/Oct” for an “Award Description”. Under “Category”, it says “Loan” and then there is an amount.
I am entering the Spring year as a Junior and since this is the first time I am doing FAFSA and applying for financial aid, I would really appreciate if someone explains what “FedDirectLoanUnsubsidized/Oct” means.
Thanks.
It is a loan from the federal government. Interest started accruing the day the money was deposited. The government is not paying the interest.
ELI5 ??
See https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized for the differences between subsidized and unsubsidized loans.
If your loans’ First Disbursement Date is on or after Oct. 1, 2014, and before Oct. 1, 2015, the loans fee is 1.073%.
On or after Oct. 1, 2015, and before Oct. 1, 2016, the loans fee is 1.068%
Wait what? I haven’t even accepted the awards yet! I thought submitting a free FAFSA application would get you all the possible financial aid options, and then it would be your choice to select them. I haven’t accepted/denied that award yet! For what it’s worth, there is a “Accept/Decline Awards” button right under. Am I obligated to this loan now?
If you didn’t accept,the loan, and you didn’t complete a master promissory note (at any point) you have not taken out a loan.
I am guessing that you when you click the button to accept the award, it automatically redirects your to complete a master promissory note?
By the way, I remember when I was signing up for FAFSA, I read that “everyone gets something. You might not get a lot, but you will get something.” I was under the impression that this would be money that doesn’t need to be paid back (in other words, not a loan). But I guess when they meant “You might not get a lot, but you will get something”, they meant a loan of “something”, huh?
The FAFSA is a financial aid application form. The information on it is used to determine federally funded need based aid. Some schools use this info to award institutional need based aid as well.
The only guarantee is the Direct Loan…$7500 for junior year.
This is your first FAFSA? You have been paying for college so far out of pocket? I’m guessing, then, that you are not low enough income to be eligible for,the Pell Grant.
“everyone gets something. You might not get a lot, but you will get something.”
No one uses this language so I very much doubt you read this on any federal site. The federal site is very clear on what federal aid is available and how to see if you qualify. If you read this on your college page, which I doubt, then take it up with them.
Aid available
Federal Pell Grant - for very low income students, up to 5775
Federal Loan, subsidized - every student who has unmet need
Federal Loan, Unsubsidized - every student who want it up to annual limit and aggregate cap
State grant - some states have this with various qualifiers
Institutional Grant - based on unmet need and availability of college funds
Outside scholarships -
That’s what is available depending on qualifications.
Institutional Scholarship - based on stats and availability (meaning if your college gives them)
Where? Loans are part of Federal Financial Aid.
If you in-state to Mass, then the Commonwealth of Massachusetts kinda gives you a scholarship already: in-state tuition rate.