Federal Direct Subsidized Stafford Loan

A Federal Direct Subsidized Loan 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.

Borrowing & Interest Rates

This loan is awarded to meet financial need after other resources are subtracted or to the annual maximum loan limit, whichever is lower. The interest rate on loans borrowed between July 1, 2023 and June 30, 2024 is 5.50%. The interest rates on loans borrowed between July 1, 2024 and June 30, 2025 will be announced by the Department of Education in June 2024. Repayment begins 6 months after you graduate or are no longer enrolled at least half time. The loan origination fee for loans borrowed after October 1, 2020 and before September 30, 2024 will be 1.057%, and will be deducted from your loan at time of disbursement.

How to Apply

To apply for a Federal Direct Subsidized Loan, you must complete the FAFSA and be enrolled for at least 6 hours per semester. If you’re eligible for a Federal Direct Subsidized Loan, it will be included on your Financial Aid Notification.

How to Accept, Modify, or Decline Your Loan Offer

You can accept, decline, or modify a Federal Direct Subsidized Loan on your electronic Financial Aid Notification by selecting the Accept/Decline Aid button at the bottom of your Financial Aid Notification. To accept or decline a loan, select “Accept” or “Decline” from the Take Action dropdown.

To accept a partial amount, select “Modify” in the dropdown menu and enter the amount in the “Modified Amount” field. Please note, modified amounts entered will be automatically split between fall and spring.

If you wish to request loan changes, you should select “Request Changes” on the Financial Aid Notification.

A Direct Loan Master Promissory Note and Entrance Counseling session is required for Federal Direct Loans before the loan funds will be disbursed. In most cases, you’ll only be required to complete one master promissory note and one entrance counseling session during your college career.