By completing the FAFSA, students are automatically eligible for low-interest federally-backed student loans. There are two main types of loans for undergraduate students through the FAFSA: Federal Direct Subsidized Loan and Federal Direct Unsubsidized Loan. Based on your FAFSA information, cost of attendance, and other financial aid awarded, our office will determine if you will receive one or both of these loans. (If your financial aid award includes a Nursing Loan, there are separate instructions for this type of loan.)
The subsidized and unsubsidized loans are in the student's name. Any other loan included
as part of your financial aid award will be covered under the heading of Financing Options
as other resources available to you.
In order for the funds from these loans to apply to your bill with the
Office of Student Accounts, you must complete these steps:
- Accept the loans through the Student Center of MyAkron.
- Complete Entrance Counseling at studentloans.gov.
- Complete the Master Promissory Note at studentloans.gov.
Things to keep in mind:
- You are not required to accept the full amount of subsidized/unsubsidized loan offered to you. If you used the financing worksheet to determine how much financial aid you need, you'll know if you need to borrow some, all, or none of these loans.
- Both of these loans accrue interest, however, the interest on the subsidized loan is paid by the federal government while you are in school (enrolled at least half-time). The interest is not paid on any unsubsidized loan funds you borrow while enrolled.
- When you complete the online requirements at studentloans.gov, you will have the option to pay the interest "as you go" or have it added to your overall balance to be repaid upon graduation.
- The interest rates for federal student loans are guaranteed through September 30th of each year.
- The federal government removes a small percentage of the loan as a fee before it is applied to your student account. Current fees are guaranteed through September 30th of each year. Example:
- A student who accepts $5,500 in subsidized and/or unsubsidized loan(s) will receive $5,441 after the loan fee.
Return to "Next Steps."