What is a Direct Stafford Subsidized loan?

Direct Subsidized Loans are for undergraduate students who are enrolled at least half-time and demonstrate financial need. Students are not charged interest on the loan while in school and during grace and deferment periods. The U.S. Department of Education (ED) is the lender. Repayment will be owed to ED.

NOTE: Effective 2012 - 2013 school year (July 1, 2012 - June 30, 2013), the interest subsidy provided during the grace period has been eliminated for those loans that first disburse on or after July 1, 2012 and before July 1, 2014. If you receive a Direct Subsidized loan during this time frame, you will be responsible for the interest that accrues while your loan is in the grace period.

Topic Information
  • Topic #: 8243-220
  • Date Created: 10/3/2012
  • Last Modified Since: 9/12/2014
  • Viewed: 215
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