Federal Direct Subsidized Stafford Loan
If you were awarded a Federal Direct Subsidized Loan and you choose to accept it, the Federal government pays your interest while you’re in school at least half time. This loan is awarded based on your financial “need” as defined by the federal government.
The Federal Direct Subsidized Loan has a six-month grace period from the time you graduate, leave school, or drop below half-time enrollment before you are required to begin repayment. Your loan servicer will contact you during this time with repayment information.
Interest rates and origination fees are updated each year by June 1.
There are Limits to What You Can Borrow
Dependent Undergraduate Students –
(except students whose parents are unable to obtain PLUS Loans) can borrow up to $31,000 in their lifetime ($23,000 can be Subsidized Loans).
There are also yearly loan limits that apply:
- Freshman
Credits Needed: 0-44
Annual Limit: $5,500 ($3,500 can be Subsidized) - Sophomore
Credits Needed: 45-89
Annual Limit: $6,500 ($4,500 can be Subsidized) - Junior/Senior
Credits Needed: 90+
Annual Limit: $7,500 ($5,500 can be Subsidized)
Independent Undergraduate Students –
(and students whose parents are unable to obtain PLUS Loans) can borrow up to $57,500 in their lifetime ($23,000 can be Subsidized Loans).
There are also yearly loan limits that apply:
- Freshman
Credits Needed: 0-44
Annual Limit: $9,500 ($3,500 can be Subsidized) - Sophomore
Credits Needed: 45-89
Annual Limit: $10,500 ($4,500 can be Subsidized) - Junior/Senior
Credits Needed: 90+
Annual Limit: $12,500 ($5,500 can be Subsidized)
*Please note: Subsidized Loan eligibility is based on your financial “need” as determined by the FAFSA.
If a student changes grade level during an academic year we will not automatically increase a student loan. To request an increase when reaching a new grade level, please email finaid@sou.edu .