Subsidized Direct Student Loans are federally guaranteed loans based on financial need. This loan is only offered to undergraduate students. Interest does not accrue on the loan while you are in school at least half time or during any future deferment periods. Students are not required to start making payments on this loan until six months after they graduate or drop below half-time. This is known as the “grace period.”
Overview of Direct Subsidized Loans (for Undergraduate Students only, if eligible)*
- 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)*
- during a period of deferment (a postponement of loan payments).
- As of July 1, 2019, the 2019-2020 interest rate is 4.53 percent.
Interest rates are set by the Department of Education around July 1st every year and will be updated accordingly at that time on our website.
- Comprehensive information on these loans is available from the U.S. Department of Education.
This website last reviewed/updated on 09/30/19