The Federal Subsidized Stafford (Direct) Loan is based on demonstrated need. While the student is enrolled at least half time, payment on the principle is deferred and the federal government pays interest. Interest will begin to accrue when a borrower enters repayment. Interest rates vary annually. The rate for 2018-19 is 5.045%.
Completion of the Free Application for Federal Student Aid (FAFSA) is required for participation in the Federal Subsidized Stafford (Direct) Loan Program.
Annual maximums for subsidized Federal Stafford (Direct) Loans are:
| Freshman |
$3,500 |
| Sophomore |
$4,500 |
| Junior/Senior |
$5,500 |