William D. Ford Federal Direct Subsidized Loan for undergraduate students

Eligibility Criteria

  1. Enrolled at least half-time
  2. Not in default on another student loan
  3. Must show financial need
  4. U.S. citizen or eligible non-citizen
  5. Maintain Satisfactory Academic Progress

Amounts and selection process

The exact amount will vary depending on financial need.

Annual Federal Direct subsidized Loan amounts


Undergraduate (dependent/independent), first year


Undergraduate (dependent/independent), second year


Undergraduate (dependent/independent), third year


Undergraduate (dependent/independent), fourth year


Cumulative Federal Direct subsidized Loan amounts (over 4 years)


Undergraduate (dependent/independent)



For the 2021-22 academic year, the interest rate will be a fixed rate of 3.73 percent. No interest* accrues while the student is enrolled at least half-time. Standard repayment period is 10 years. A net 1.057 percent processing fee is deducted from the loan proceeds when the funds are disbursed. 

*As of July 1, 2013, a first-time Federal Subsidized Student Loan borrower is no longer eligible to receive Direct Subsidized Loans for more than 150 percent of the published length of their academic program (measured in academic years). For example, if you are enrolled in a 4-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is 6 years (150 percent of 4 years = 6 years). In addition, a borrower reaching the maximum time frame limit becomes ineligible for the interest subsidy benefits on all Federal Subsidized Loans disbursed to the borrower on or after July 1, 2013.

More Information

Repayment begins six months after the last date of half-time enrollment.

Interest subsidy during the six-month grace period is eliminated for new Federal Direct Loans made on or after July 1, 2012, and before July 1, 2014. The repayment period still begins six months after the student is no longer enrolled at least half-time, but interest that accrues during those six months will be payable by the student rather than be subsidized by the federal government.

Application Process

  1. File the Free Application for Federal Student Aid (FAFSA)
  2. Eligible students will be notified to accept the Federal Direct Loan on CheckMarq
  3. Federal regulations require first-time borrowers to complete entrance counseling and an electronic Master Promissory Note (MPN) before disbursement of funds

Renewal Process

Award is renewed only if all necessary forms are filed each year and students continue to meet eligibility requirements. Students may not be required to complete entrance counseling and MPN if these requirements were previously completed.