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Federal Direct Subsidized Loans

To be eligible, the student must:

  • Be admitted into an undergraduate degree-seeking program
  • Be registered at least half-time (6 credits)
  • For the 2021-2022 academic year:File a 2021-2022 FAFSA
  • For the 2022-2023 academic year: File a 2022-2023 FAFSA
  • Not be in default on any federal student loans
  • Not be in overpayment of any type of federal aid
  • Maintain Satisfactory Academic Progress

Fees and Interest Rate Information:

  •  The interest rate for loans first disbursed between July 1, 2021 and June 30, 2022 is 3.73%
  • The interest rate for loans first disbursed between July 1, 2022 and June 30, 2023 is 4.99%
  • Loan fees are deducted proportionately from each loan disbursement, so the amount you receive is less than the amount you accept. The fee amount for Federal Direct Subsidized Loans first disbursed between October 1, 2020 and before October 1, 2023 is 1.057%.
  • For additional information regarding loan fees and interest rates, please go to

Repayment of Federal Direct Subsidized Loans:

  • This is a loan that must be repaid, including any interest accrued. 
  • Interest does not accrue while you are in school attending at least half-time.  It begins to accrue six months after you drop below half-time enrollment
  • Repayment begins 6 months after you drop below half-time enrollment
  • The Department of Education is the lender, but payment will be made to a servicer appointed by the Department.
  • Loan history and servicer contact information is found by logging into
  • Information on repayment plans, consolidation, deferment, and loan simulation, etc. is found at

Maximum Loan Limits:

  • Annual Limit: Maximum loan limits apply on an annual basis.  For more information about annual borrowing limits, see
  • Aggregate Limits: Maximum loan limits apply to the total amount you can borrow over the course of your education.  For more information about aggregate borrowing limits, see
  • Time Limit: First-time borrowers may not receive subsidized loans for more than 150% of the length of the degree program.  (For example, 150% of the program length for a student working towards a 4-year first bachelor’s degree would be 6 years). Exceeding the time frame to receive a degree results in loss of the interest subsidy.  Transferring to a shorter program may also result in loss of the interest subsidy (For example, transferring from a four-year bachelor’s degree program to a two-year associate’s degree).  For additional information, see
Last Updated: 7/5/22