Direct Subsidized Loan
What Is a Direct Subsidized Loan?
The Direct Subsidized Loan Program provides low-interest loans to students who
need help
paying for college.
Like other federal student loans, the Direct Subsidized Loan provides you with
a number of advantages over typical
private student loans.
- You will receive a low, fixed interest rate. The interest rate for a Direct
Subsidized Loan during the 2012–2013 academic year is 6.8%.
- While you are attending college full-time, you don't have to repay your loan.
- Your loan won't accumulate interest while you are in college or while it is in
"deferment." A loan is in deferment when the lender permits you, the borrower, to
postpone payments for financial or other reasons.
- Your Direct Subsidized Loan eligibility is not based on you or your parents'
credit score. Federal Direct Loan Program funds come directly from the federal government.
Direct Subsidized Loan Eligibility and Requirements
To be eligible for a Direct Subsidized Loan, you must be enrolled at least half-time
at a participating college. When
researching colleges,
learn which ones participate in the Direct Subsidized Loan Program, either by
checking on their website or by contacting a college financial aid administrator
directly.
The Direct Subsidized Loan is "need-based" student aid, meaning that your eligibility
depends on your financial circumstances, not academic, civic, or athletic achievements.
Remember, most students are eligible for some aid.
Repayment of your Direct Subsidized Loan begins six months after you graduate
or drop below half-time status.