Direct Subsidized Loan
Repayable undergraduate loan for students with financial need; the interest subsidy applies only during program-defined periods.
About Direct Subsidized Loan
It is one of the two main Direct Loan types for undergraduates and is distinguished by its temporary interest subsidy.
Only undergraduate students with demonstrated financial need may receive it, and they must be at least half-time at a participating school in an eligible program. FAFSA starts the review; the college determines the amount within federal limits and cost of attendance. Admission does not guarantee an offer, and students do not have to accept the full amount offered.
File FAFSA each year and review the college aid offer. Before accepting, estimate the balance, interest rate, and origination fees; complete entrance counseling and the master promissory note. Ask whether grants or work can cover part of the cost before borrowing, and keep a record of each disbursement.
Who it serves and what it can cover: Repayable undergraduate loan for students with financial need; the interest subsidy applies only during program-defined periods.
How to apply or get help: File FAFSA each year and review the college aid offer. Before accepting, estimate the balance, interest rate, and origination fees; complete entrance counseling and the master promissory note. Ask whether grants or work can cover part of the cost before borrowing, and keep a record of each disbursement. For case-specific questions, contact the program or financial-aid office named on its official page.
Public student financial-aid program