Federal Direct Stafford Loan (subsidized)
For students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods. Note: federal regulations were amended to temporarily eliminate the interest subsidy provided on Direct Subsidized Loans during the six month grace period provided to students when they are no longer enrolled on at least a half-time basis. This change will be effective for new Direct Stafford Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014.
Students accepting Direct Loan funds for the first time must complete an online Direct Loan Master Promissory Note before receiving their loan funds.
First-time borrowers who are first-year college students must also complete Direct Loan entrance counseling.
- Federally funded
- Existing Direct Loans can be consolidated.
- Need-based (Cost of Attendance minus EFC minus other aid)
- Enrolled at least half-time in a degree or certificate program
- Repayment of principle is deferred and there is no interest while enrolled at least half-time.
- Limited deferment provisions; see the Repaying Your Student Loans and the Dept. of Education website (information specifically for teachers)