Federal loans are government-backed financial aid options available to graduate and professional students, providing favorable terms and repayment flexibility. The Federal Direct Unsubsidized Loan is a common federal student loan program available to graduate students. It is not based on financial need, and interest accrues from the moment the loan is disbursed. The Federal Direct Unsubsidized Loan for Select Health Professions is a variant of the unsubsidized loan specifically designed for health profession students, such as medical, or dental students. It offers a higher borrowing limit to accommodate the costs associated with these programs. Federal student loans are made through the William D. Ford Federal Direct Loan Program. Eligible students borrow directly from the U.S. Department of Education and the University of Iowa administers the loan.
How to Apply
- Complete the Free Application for Federal Student Aid (FAFSA).
- First-time borrowers must complete Entrance Counseling and a Master Promissory Note (MPN) for Graduate/Professional students.
- Accept, reduce, or decline your Federal Direct Loan(s) for each semester in MyUI.
Federal Direct Unsubsidized Loan
- Available to graduate, and select health professional students who have half-time enrollment
- Not based on financial need
- Interest begins to accrue when the loan is disbursed and will accrue through the life of the loan
- Interest payments are not required while a student is in school, but it will reduce the total repayment amount
- We encourage all students to borrow this loan before borrowing PLUS or private student loans
Loan Limits
Federal Direct Unsubsidized Loan
Annual Maximum
$20,500
Cumulative Maximum
$138,500 (includes the amount borrowed as an undergraduate)
Federal Direct Unsubsidized Loan for Select Health Professions
Annual Maximum for Pharmacy, MPH, MHA, PhD Clin Psych
$12,500 per year for 9-month programs
$16,667 per year for 12-month programs
Annual Maximum for Med, Dent
$22,500 per year for 10-month programs
$24,444 per year for 11-month programs
$26,667 per year for 12-month programs
8.08 %
2024-25 INTEREST RATE
For loans first disbursed
between 7/1/2024 - 6/30/2025
1.057 %
ORIGINATION FEE
For loans first disbursed
between 10/1/2020 - 9/30/2025
Interest is additional money that you pay to a lender as a cost of borrowing money. Interest is calculated as a percentage of the unpaid principal amount that you borrowed.
Direct Loans are “daily interest” loans. On daily interest loans, interest accrues (adds up) every day.
An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan.
Federal loans have an origination fee; therefore, the amount you may receive as a disbursement may be slightly lower than the amount you accept.