NEWS & EVENTS
  • cmps
Federal Direct Loans
  • Important Notice for First-Time Borrowers

    First-time loan borrowers through the Federal Direct Loan program must complete entrance counseling and sign a Master Promissory Note to receive your money.  These processes are required only one time and help borrowers better understand the responsibilities of having student loans.

    About Federal Direct Loans

    The Federal Direct Loan is not a grant awarded by Capital University. It is a loan and will require repayment. To apply for a Federal Direct Loan, you must complete the Free Application for Federal Student Aid (FAFSA). Even though the unsubsidized Federal Direct Loan is available to all students regardless of financial need, you must still submit the FAFSA to be eligible. You can receive a subsidized loan and an unsubsidized loan for the same period. For more information, see the Student Loan Fact Sheet.

    Subsidized Federal Direct Loans 

    • This is a loan available to students with demonstrated need.
    • The interest rate is fixed at 3.86%. Each year, the U.S. Department of Education adjusts the interest rate on new loans on July 1.
    • The federal government pays the interest on the loan while the student is enrolled at least half-time per term.
    • There is a 10 year repayment which begins 6 months after graduation or after the student is no longer enrolled at least half-time,
    • This type of loan is available to undergraduate students or those in our Education Licensure program.

    Unsubsidized Federal Direct Loans

    • This loan is not based on financial need, therefore, the federal government does not pay the interest while the student is in school.
    • The current interest rate is fixed at 3.86% for undergraduate students.
    • The current interest rate is fixed at 5.41% for graduate students.
    • The student has the option to pay the interest quarterly or let the interest accrue.
    • The unsubsidized Federal Direct loan may be used along with the subsidized Federal Direct loan to receive the maximum Federal Direct eligibility.
    • Independent students or students whose parents are ineligible to borrow under the Federal Direct Parent PLUS program may borrow additional unsubsidized Federal Direct loan funds during an academic year.
    • Repayment terms are the same as the Subsidized Federal Direct loan. 


    Your financial aid award letter will indicate the maximum loan amount available for the academic year. If you plan to attend in the summer term in addition to the fall and spring, the total loan amount would be divided between three terms.

    Disbursement of Loan Funds

    Capital University disburses all loan funds to our undergraduate students approximately seven days prior to the start of each semester.  Funds can only be disbursed once the student has completed the two required steps.  If we are unable to disburse the loan seven days before the term begins, we will disburse the funds as soon as the student has completed the Master Promissory Note and Entrance Counseling.

    Actions Required to Receive Your Loan Money

    New Capital students or first-time new borrowers at Capital MUST complete a promissory note and entrance counseling. 


    Direct Loan Exit Interview