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The purpose of the Federal Direct Subsidized Stafford Loan is to provide low-interest educational loans that enable a student to pay the cost of attendance at a public, private, or nonprofit college or university. The federal government pays the interest on these loans while a student is in school, during a grace period, and during authorized periods of deferment.

Eligibility Requirements:

• Be a U.S. citizen or an eligible non-citizen.
• Complete a  and be eligible to receive federal financial aid.
• Be enrolled at least half-time.
• Meet Satisfactory Academic Progress requirements.
• Must not owe a refund (also called an "overpayment") on any federal grant program or be in default or delinquent on a previously obtained federal student loan.

Annual Loan Limits:

• First-year undergraduates ------------------ $3,500
• Second-year undergraduates --------------- $4,500
• Aggregate limit for undergraduate students -- $23,000

Borrowers in the Direct Subsidized Loan program will have eligibility limited to 150 percent of the time required for a degree. For example, A student in a two-year associate degree program will be eligible for only three (3) years of Subsidized Loan eligibility. A student in a one-year certificate program would have only one-and-a-half (1 1/2) years of eligibility for the loan.

An origination fee is deducted from the proceeds of each loan disbursement. There are no guarantees or insurance premium fees. Loans will have a fixed annual (simple interest) rate for the life of the loan. The interest rate will change each spring. The borrower is not responsible for the interest accrued while he/she is enrolled at least half-time, during the six-month grace period, and during certain authorized deferment periods. Interest is not capitalized at any time and may be paid as it accrues

Repayment of the loan begins six months after the student ceases to be enrolled at least half-time. The loan repayment schedule will require a minimum monthly payment of $50 or an amount required to repay the loan plus interest within 10 years, whichever is greater. Borrowers may be eligible for the postponement of loan repayment under certain circumstances.