William D. Ford Federal Direct Loan Program

Federal Direct Subsidized Loan Programs

This program is available to students who are enrolled for at least half-time (6 hours credit hours) each semester at the time of disbursing of funds. Students borrow from the U.S. Department of Education and may apply for a maximum loan according to the following schedule:

  • $5,500 for students who have earned less than 32 hours (freshmen).
  • $6,500 for students who have earned at least 32 hours but less than 60 (sophomores).
  • $6,500 for students who have earned at least 60 hours, but have not completed the requirements for an associate degree (Special).

The total of a Federal Direct Subsidized Loan award and a Federal Direct Unsubsidized Stafford Loan award may not exceed the above annual award limits. The U.S. Department of Education will deduct an origination fee of up to 3% and up to 1 % default fee of the principal amount of the loan from each disbursement received by a student. These fees are used to offset the costs of default claims and special allowances.

A first year, first time Federal Direct Loan borrower cannot receive a Federal Direct Loan disbursement(s) until 30 days after the first day of class.

Loans of this type are repaid over a period of 10 years, excluding periods of deferment and/or forbearance.

For Federal Subsidized Loans, the interest does not accrue while the student is enrolled at least half time (6 hours). Repayment of principal and interest commences 6 months after the day on which the student ceases to be enrolled at least half-time (6 hours).

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