Subsidized Federal Direct Stafford Loan

The amount of subsidized Federal Direct Stafford Loan you may borrow is the difference between the cost of education (your budget) and your resources (family contribution, financial aid such as Federal Perkins Loan, College Work-Study, and any other assistance you receive from the school and outside resources including scholarships). However, you may not borrow more than the federal maximum for your grade level.

If you are eligible for a subsidized Federal Direct Stafford Loan, the government will pay the interest for you until repayment begins. You will be assessed a loan origination fee (currently 1.5%), which is deducted from the loan proceeds but will not reduce the principal balance you are required to repay.