Direct Subsidized Loan

Offered to undergraduate and credential students based on demonstrated financial need.

Graduate and professional students are not eligible for the Subsizided Loan as of July 1, 2012. 

The interest on the loan is paid by the Department of Education as long as the student maintains half-time enrollment (6 units); or during the 6 months grace period*, or if the student has not exceeded his or her maximum time frame**.

*Grace period: 

Students who received a Direct Subsidized loan that was first disbursed between July 1, 2012, and July 1, 2014, are responsible for paying interest that accrues during the grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principalbalance.

**Maximum time frame:

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized loans. This limit does not apply to Direct Unsubsidized loans or Direct PLUS loans.

If this limit applies, you may not receive Direct Subsidized loans for more than 150 percent of the published length of your program. This is called your "maximum eligibility period." Your maximum eligibility period is based on the published length of your current program. You can find the published length of your program in the school catalog.