The Federal Direct Subsidized 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, but the rate for the year the funds are borrowed is in effect for the life of that loan. The rate for 2025-26 is 6.39%.
Completion of the Free Application for Federal Student Aid (FAFSA) is required for participation in the Federal Direct Subsidized Loan Program.
Annual maximums for Federal Direct Subsidized Loans are:
| Freshman |
$3,500 |
| Sophomore |
$4,500 |
| Junior/Senior |
$5,500 |
The lifetime loan limit for all Direct Subsidized Loans is $23,000.