Federal Direct Subsidized Loans

The Subsidized Loan is a federal loan that is awarded based on financial need. The federal government will pay the interest on this loan as long as you are enrolled half-time or more. After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repaying your loan. During this period, you will receive repayment information from your loan servicer, and you will be notified of your first payment due date.

Do you have questions about repaying your student loans? Learn more about your student loan repayment options.

Eligibility

Interest Rates and Origination Fees

The Department of Education announces the interest rates for federal student loans by July 1 of each year. A new loan is awarded each academic year that you are eligible, and the interest rate will stay the same until your loan is repaid. Interest rates could be different each year for new loans. This means you could have more than one Subsidized loan but each one could have a different interest rate.

Interest rates for Direct Subsidized loans

Borrower Type	First Disbursement Date	Fixed Interest Rate
Undergraduate	On July 1, 2024, and before July 1, 2025	6.53%

Origination Fees for Direct Subsidized loans

First Disbursement Date	Origination Fee
On or after October 1, 2024, and before October 1, 2025	1.057%

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