A student can borrow up to $20,500 per year through the Federal Direct Unsubsidized Loan program. Payments on the principal of the Direct Unsubsidized Loan can be deferred while the student is enrolled at least half time. The loan has a fixed interest rate of 6.8%. If a student is applying for a Federal Direct Unsubsidized Loan for the first time at Hofstra University, he or she will need to complete the Master Promissory Note online. Student loan amounts are split into two disbursements, one delivered at the beginning of each semester.
Borrowers should understand that a fee of 1.0% will be deducted from the gross amount of the loan borrowed. The borrower should expect to receive 1.0% less money than he or she asked to borrow. The borrower is responsible for paying any interest that accrues while he or she is a student. The loan servicer will give the borrower the option to make regularly scheduled interest payments, or the borrower may choose to capitalize your interest. Capitalization means that any interest that accrues while the borrower is a student is added to the principal of the loan, so the borrower has no payments while enrolled.