Federal Student loans are offered by the U.S. Department of Education to help eligible students cover the cost of higher education at an accredited institution.
To apply for a Direct Loan, you must first complete and submit the Free Application for Federal Student Aid (FAFSA®) form. RPI will use the information from your FAFSA form to determine how much student aid you are eligible to receive. Direct Loans are generally included as part of your financial aid package.
Options for Undergraduate Students
Subsidized Loans
- Subsidized: Federal government covers interest while enrolled at least half-time and for six months after.
- Eligibility: Based on financial need; only available to undergraduate students.
- Origination Fee: Department of Education may deduct 1.057% of borrowed amount.
- Interest Rate: Fixed rate of high yield Treasury Note as of June 1 + 2.05%; 2024-2025 rate is 6.53%.
- Repayment Start: Six months after graduation, enrolling in fewer than six credits, or leaving school.
- Interest-Free Repayment Option: Pay full principal before grace period ends to avoid interest.
- Monthly Payment: Varies with total borrowed amount.
- Repayment Term: Standard term is 10 years.
Unsubsidized Loans
- Unsubsidized: Federal government does not cover interest; interest accrues from disbursement.
- Interest Accrual: Begins while in school; can opt to make interest payments during this time.
- Interest Capitalization: Unpaid interest added to principal if not paid during school.
- Interest Rate, Origination Fee, and Repayment Term: Same as Subsidized Loan program.
Learn more about the difference between subsidized and unsubsidized loans
Options for Graduate Students
Unsubsidized Loans
- Unsubsidized: Federal government does not cover interest; interest accrues from disbursement.
- Interest Accrual: Begins while in school; can opt to make interest payments during this time.
- Interest Capitalization: Unpaid interest added to principal if not paid during school.
- Interest Rate, Origination Fee, and Repayment Term: Same as Subsidized Loan program.
