Direct Subsidized Loans


A Direct Subsidized Loan is a need-based loan that is available to undergraduate students who have demonstrated financial need.

Thinking of taking out a student loan? See what your loan repayment will look like by using the Loan Simulator at STUDENTAID.GOV.  


  • Complete the FAFSA.
  • Must be an undergraduate student with financial need, which is based on the Expected Family Contribution (EFC).
  • May not exceed the aggregate loan limits established by the US Department of Education.
  • Must be enrolled in at least 6 eligible credit hours.
  • Must complete Student Loan Entrance Counseling at STUDENTAID.GOV.
  • Must e-sign Master Promissory Note (MPN).

Annual & Aggregate Loan Limits

Award Amount

Award amounts are based on your program level, how many credits you have completed, and if you are considered a dependent or independent student defined by the US Department of Education.

Learn About Loan Amounts

Loan Fees

There is a loan fee on all Direct Subsidized Loans and Direct Unsubsidized Loans.

The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement.

Current Loan Fee Percentage

Interest Rate

Learn about interest rates and how much it costs to pay a loan back.

Current Interest Rates

Additional Benefits

The U.S. Department of Education pays the interest on your Direct Subsidized Loan:

  • While you are in school at least half-time (6 credits)
  • 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)

Continued Eligibility

  • Complete a new FAFSA each award year.
  • Meet Satisfactory Academic Progress each semester.
  • Meet all other eligibility requirements.
  • You may not exceed your Direct Loan Aggregate Loan Limits.
  • E-sign an MPN if it has expired.


Exit Loan Counseling


If a student who received federal loans withdraws, drops below half time enrollment, or graduates, they are required to complete Exit Loan Counseling at STUDENTAID.GOV. 

To Whom Your Federal Student Aid Information is Sent

Federal Pell Grant and Loan information is sent to the U.S. Department of Education. This information is then included in the National Student Loan Data System (NSLDS) and is accessible to you and authorized agencies, lenders, servicers, and institutions.

View Your Pell Grant & Loan History