Government of the United States - Federal Student Aid-Unsubsidized Loans

What you get

A ‘Direct Unsubsidised Loan’ is a government student loan provided by the US Department of Education. It is a loan, not a grant, so you must repay it with interest. The amount you can borrow each year depends on your stage of study:

• Undergraduates: over EUR 5,000 to 11,300 per year (USD 5,500 to 12,500), depending on your year of study and whether you are classified as a dependent or independent student.
• Graduate students: to approximately EUR 18,500 per year (USD 20,500).
• Professional students (e.g. medicine, law): up to approximately EUR 45,000 per year (USD 50,000).

Your university determines the exact amount based on your study costs and any other financial support you receive; therefore, you may be offered less than the maximum amount. The interest rate is fixed for the entire term of the loan: 6.52% for students on undergraduate programmes and 8.07% for students on postgraduate programmes or vocationally qualifying courses (for loans first paid out between 1 July 2026 and 30 June 2027). A loan processing fee of approximately 1.057% is deducted before the loan is paid out. Interest accrues from the first day of payment, even whilst you are studying, meaning that the total amount to be repaid increases over time.

Who can apply

• Nationality: You are a US citizen or an eligible non-citizen.
• Degree level: You are a Bachelor’s, Master’s or vocational student.
• Field of study: Any subject.
• Enrolment: You are enrolled on at least a part-time basis on a degree programme leading to a degree or certificate.
• Financial need: Not required. You do not need to prove that you need the money.
• Academic progress: You continue to make satisfactory academic progress and are not in arrears with any existing government loans.

How to apply

Every year, you complete the free application for federal student aid (FAFSA) at studentaid.gov. Your university will then work out how much you are eligible to receive and send you a financial aid offer. You can accept, reduce or decline this offer. Anyone taking out a loan for the first time must also attend an induction session and sign a Master Promissory Note (your written commitment to repay the loan).

How realistic are your chances?

This is an entitlement, not a means-tested scholarship. There is neither a selection panel nor a means test. If you are a US citizen or an eligible non-citizen and are enrolled at least half-time in an eligible course of study, you are generally entitled to the amount up to the annual cap set by your university. The real question is not whether you will receive the funding, but whether taking out a loan makes sense for you, as interest accrues from day one and you will have to repay the full amount after a six-month grace period.