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Southern Oregon University


This Federal Direct Unsubsidized Stafford/Ford Loan is a student loan and differs from the Subsidized loan in that it is not based on need and the interest begins accruing when the funds are disbursed. The interest rate for Unsubsidized loans is fixed at 6.8% for undergraduates and 6.8% for graduates (if the first disbursement date is between July 1, 2010, and June 30, 2011). Unsubsidized loans will have an origination fee of 1%. If you do not make the first 12 payments of your loan on time once you enter repayment, you will lose your rebate.

Students who will be borrowing under the Unsubsidized Loan Program must complete Loan Entrance Counseling and a Master Promissory Note (MPN) prior to having loan funds disbursed.

The MPN and Loan Entrance Counseling can be completed at www.studentloans.gov.

To complete your MPN you will:

  • Click on the green login button on the left and use your FAFSA pin # to login
  • Click “Complete Master Promissory Note”
  • Choose “Subsidized/Unsubsidized”, follow all instructions through to the end
  • When submitting the MPN you will sign it electronically with your FAFSA Pin #
  • At the end of the MPN, be sure to submit your signature, view the html, and then submit a second time to ensure processing.

To complete your Direct Loan Entrance Counseling:

  • Click “Complete Loan Entrance Counseling”
  • Follow all prompts through to the end
  • Loan entrance counseling requires you to read information about student loans and then follow up by answering questions about the loan

Repayment of Unsubsidized loans begins six months after a student graduates, leaves school, or drops below half-time enrollment. This loan is also available to part-time students as long as they are registered in at least 6 credits as an undergraduate student or 5 credits as a graduate student. Graduate students must be fully admitted to a master's program to borrow at graduate levels.

In order to be eligible to borrow under the subsidized student loan program, students must have “remaining need” after their Expected Family Contribution and any other need-based awards are deducted from their Cost of Attendance at SOU.

Click here to see the Loan Limits for Subsidized and Unsubsidized Loans.