Direct Subsidized Loans
Direct Subsidized Loans are available to undergraduate students with financial need.
- Your school determines the amount you can borrow, and the amount may not exceed your financial need.
- The U.S. Department of Education pays the interest on a Direct Subsidized Loan:
- While you’re in school at least half-time,
- For the first six months after you leave school (referred to as a grace period*), and
- During a period of deferment (a postponement of loan payments).
*Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
Learn more about Subsidized Loans.