The Federal Direct Subsidized Loan Program provides long-term, low interest, need-based loans to undergraduate students.

The Federal Direct Subsidized Loan Program had been disbursed through the Federal Family Education Loan Program (FFELP) prior to the 2010-11 academic year, when the program was switched to the Federal Direct Loan Program.

The interest rate for the Federal Direct Loan Program fixed at 6.8%. For specific information about the interest rate on your loans, please contact your lender.

Undergraduates may borrow up to $3,500 for the first year of study, $4,500 for the second year, and $5,500 per year for subsequent undergraduate study, not to exceed a maximum of $23,000. Borrowers will not be required to begin repayment of the Federal Direct Subsidized Loan Program until six months after they cease to be enrolled on at least a half-time basis.

Federal regulations require the limitation or reduction of the amount of an unsubsidized or subsidized Federal Direct Loan under certain prescribed conditions. These conditions are as follows: (1) the borrower is an undergraduate, applies for a Stafford Loan and is enrolled less than a full academic year (fall and spring semesters) or (2) the borrower will complete all degree requirements at the end of the semester or term. If both of these conditions occur, the Stafford Loan amount may be reduced and the borrower will be sent notification to review the revised award letter on VIP.

We are required to disburse your loan in at least two installments generally to coincide with the beginning of the enrollment period covered by the loan. Equal installments of your loans will be disbursed at the start of each semester if your loans cover multiple semesters. A loan that covers only one semester or term, however, will be disbursed in full at the beginning of the semester or term.

Additionally, if after the time your Federal Stafford Loan, (subsidized or unsubsidized) was certified, you receive any type of other financial assistance, or your tuition fee structure changes, your eligibility for the Stafford Loan may be reduced. In some cases, you may be required to repay amounts in excess of your eligibility.

For more information about subsidized Stafford Loans, including how to apply, click here.