Terms:
Information:
- The Stafford subsidized loan is awarded on the basis of financial need as determined by the FAFSA.
- The federal government pays the interest on the loan until the student begins repayment and during authorized period of deferment.
- Effective July 1, 2013 a first-time student loan borrower is eligible for Direct Subsidized Loans up to 150% of the published length of the borrower's current educational program. For example, a student pursuing a 2-year associate degree may only receive a Direct Subsidized Loan for 3 years (150% of their program). Students may still be eligible for the interest rate associated with a subsidized loan after the 3 year period, however, they will not benefit from the deferral of the interest accruing while attending school.