Federal Direct Subsidized Stafford Loans (FDSSL)

Federal Subsidized Stafford Loans are fixed-rate, need-based loans paid over a 10 year period.

Fixed Interest Rate

The Federal Subsidized Direct Stafford loan interest rate is fixed. The interest is paid (subsidized) by the Federal Government until six months after the student leaves college.

Loan Origination Fees

The loan fees are deducted proportionately from each loan disbursement. You are responsible for repaying the entire amount you borrowed and not just the amount you received in loan disbursements.

Maximum Loan Limits (4 years)

The student can receive a maximum Subsidized Stafford loan of:

$3,500 for the freshman year. $4,500 for the sophomore year. $5,500 for junior, senior, and higher years. $23,000 is the total maximum amount allowed in subsidized loans.

Qualifications

The student must demonstrate a financial need by filing the FAFSA financial aid application form to receive this loan. Stafford loans carry both life and disability insurance on the student. If the student dies or becomes totally disabled, the loan balance is forgiven. These loans are in the student’s name and the student will be entitled to the student loan interest tax deduction.