Subsidized Stafford Loans (“Direct Loans”)

Subsidized Stafford Loans (“direct loans”) are low-interest loans for students with financial need. These loans use government money but are managed by individual schools, and the government pays for the interest on these loans while students are still in school.

Am I eligible?

You may be eligible if:

You’re an undergraduate or graduate student
You’re working toward a degree at a school that participates in the “direct loan” program
You’re enrolled at least half-time
You’re a U.S. citizen or an eligible non-citizen
You have a financial need (as determined by the FAFSA)

How much can I borrow?

The amount you can borrow depends upon information from their FAFSA and how many years you’ve been in college. If you are in your first year of college, for example, you can borrow up to $3500. If you are in graduate school, you can borrow up to $8500 for any one year.

When do I need to start repaying the loan?

You don't need to start repaying the loan until 6 months after graduating, leaving school (without graduating), or attending school less than half-time.
You have up to 10 years to repay the loan, and there are a number of payment plans available.

When should I apply?

You should apply for Stafford loans when you are applying for college. You can also apply while attending college. You’ll need to apply each year by filling out the FAFSA.

Get a schedule of important FAFSA deadlines.