The Federal Direct Subsidized Stafford Loan is awarded to students who have a demonstrated need. The Subsidized Loan does have a loan limit attached that may limit the amount you may borrow. The basic terms of subsidized Direct Loans are as follows:

• Maximum annual loan amounts are $3,500 for freshmen, $4,500 for sophomores and $5,500 for juniors and seniors.
• A 1.068% origination fee is deducted from loan proceeds.
• The net amount of the loan is disbursed in two installments.
• No interest accrues and no payment is required while the borrower is enrolled at least half time.
• Repayment begins six months after termination of enrollment.
• The standard repayment period is 10 years, although other options are available.

The interest rate for Federal Subsidized Stafford Loans changes every July 1. Repayment of the subsidized loan begins six months after you are no longer enrolled at least half time (six credits) and the federal government pays interest on the loan for you during eligible periods of enrollment.

Interest Rates for Federal Loans