Federal Direct Subsidized Stafford Loan
A Federal Direct Subsidized Loan is awarded to meet financial need after other resources are subtracted or to the annual maximum loan limit, whichever is lower. It is the U.S. Department of Education's major form of self-help aid and is available through the William D. Ford Federal Direct Loan Program. The interest rate for Federal Direct Subsidized loans disbursed on or after July 1, 2006 until June 30, 2008 is fixed at 6.8%. For undergraduate students, Federal Direct Subsidized Loans offered from July 1, 2008 until June 30, 2009 have a fixed interest rate of 6.0% and from July 1, 2009 until June 30, 2010 have a fixed interest rate of 5.6%. For graduate/professional students, Federal Direct Subsidized loans have a fixed interest rate of 6.8%. The federal government pays interest on the loan until you begin repayment.
Apply for a Federal Direct Subsidized Loan
To apply for a Federal Direct Subsidized Loan, you must complete the FAFSA. To be eligible, you must be enrolled for at least six hours per semester. If you are eligible for a Federal Direct Subsidized Loan, it will be included on your Financial Aid Award Letter.
Accept/Reduce/Decline a Federal Direct Subsidized Loan
You can accept or decline a Federal Direct Subsidized Loan on your electronic Award Letter by selecting “Accept” or “Decline” in the dropdown box on the Award Letter Accept/Decline Awards page. You can reduce your loan by selecting “Accept” in the dropdown box and entering a lower award amount in the “Partial Accept” field. If you wish to request loan changes, you should use the “Request Changes” on the Award Letter Information Request page of your electronic Award Letter.
A Master Promissory Note (MPN) and Entrance Counseling are required for Federal Direct Loans before the loan funds will be disbursed. In most cases, you will only be required to complete one MPN and complete one entrance counseling session during your college career.
