{"additionalLinks": [{"href": "/understand-aid/types/loans/federal-vs-private", "id": null, "target": null, "value": "Federal Versus Private Loans", "widgetType": "anchor"}, {"href": "/understand-aid/types/loans/interest-rates", "id": null, "target": null, "value": "Federal Interest Rates and Fees", "widgetType": "anchor"}, {"href": "/resources/scams", "id": null, "target": null, "value": "Avoiding Student Aid Scams", "widgetType": "anchor"}], "href": "/understand-aid/types/loans/subsidized-unsubsidized", "id": "32983", "language": "en", "mainContent": [{"classes": null, "id": null, "value": "Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. (You might see Direct Subsidized Loans and Direct Unsubsidized Loans referred to as Stafford Loans or Direct Stafford Loans, but these aren\u2019t the official loan names.)", "widgetType": "paragraph"}, {"headerSize": "2", "id": "subsidized-vs-unsubsidized", "value": "Differences Between Direct Subsidized Loans and Direct Unsubsidized Loans", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "In short, Direct Subsidized Loans have slightly better terms to help out students with <a class=\"glossary-term\" data-glossary-href=\"/glossary/financial-need.json\">financial need</a>.", "widgetType": "paragraph"}, {"cardHeaderSize": null, "cardStyle": null, "cardTitle": "Quick Overview of Direct Subsidized Loans", "classes": null, "data": [{"headerSize": "4", "id": null, "value": "Who can get Direct Subsidized Loans?", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "Direct Subsidized Loans are available to undergraduate students with financial need.", "widgetType": "paragraph"}, {"headerSize": "4", "id": null, "value": "How much can you borrow?", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "Your school determines the amount you can borrow, and the amount may not exceed your financial need.", "widgetType": "paragraph"}, {"headerSize": "4", "id": null, "value": "Who will pay the interest?", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "The U.S. Department of Education pays the interest on a Direct Subsidized Loan", "widgetType": "paragraph"}, {"data": [{"data": [{"classes": null, "id": null, "value": "while you\u2019re in school at least half-time,", "widgetType": "paragraph"}], "listItemClass": null, "listStyleType": null, "null": "Off", "widgetType": "list_item"}, {"data": [{"classes": null, "id": null, "value": "for the first six months after you leave school (referred to as a grace period*), and", "widgetType": "paragraph"}], "listItemClass": null, "listStyleType": null, "null": "Off", "widgetType": "list_item"}, {"data": [{"classes": null, "id": null, "value": "during a period of deferment (a postponement of loan payments).", "widgetType": "paragraph"}], "listItemClass": null, "listStyleType": null, "null": "Off", "widgetType": "list_item"}], "listStyleType": null, "listType": "ul", "null": "Off", "reversed": "False", "start": null, "widgetType": "list"}], "widgetType": "card"}, {"cardHeaderSize": null, "cardStyle": null, "cardTitle": "Quick Overview of Direct Unsubsidized Loans", "classes": null, "data": [{"headerSize": "4", "id": null, "value": "Who can get Direct Unsubsidized Loans?", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "Direct Unsubsidized Loans are available to undergraduate, graduate, and professional students; there is no requirement to demonstrate financial need.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "<strong>Note:</strong> Award amounts will be reduced if students are enrolled for less than full-time enrollment.", "widgetType": "paragraph"}, {"headerSize": "4", "id": null, "value": "How much can you borrow?", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.", "widgetType": "paragraph"}, {"headerSize": "4", "id": null, "value": "Who will pay the interest?", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.", "widgetType": "paragraph"}, {"data": [{"headerSize": "4", "id": null, "value": "Good to know", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "During periods of time when you are not required to make payments\u2014such as while you are in school, in a deferment, or in a forbearance\u2014your interest will accrue (accumulate) and it will in certain instances be capitalized (which means that your interest will be added to the principal amount of your loan). Whether your unpaid interest capitalizes or not, you are still responsible for paying the interest that accrues. You can always choose to pay the interest that accrues even when you are not required to make a payment.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "<a href=\"/understand-aid/types/loans/interest-rates#unpaid-capitalize\">When does unpaid interest capitalize?</a>", "widgetType": "paragraph"}], "null": "Off", "target": null, "widgetType": "highlight"}], "widgetType": "card"}, {"headerSize": "2", "id": "how-much", "value": "Loan Amount Limits", "widgetType": "text_header"}, {"data": [{"classes": null, "id": null, "value": "There are important <a href=\"/announcements-events/big-updates/definitions#loan-limits\">loan limit changes</a> to be aware of with the signing of the <em><a href=\"/announcements-events/big-updates\">One Big Beautiful Bill Act (OBBBA)</a></em> on July 4, 2025. Please read the information below carefully.", "widgetType": "paragraph"}], "null": "Off", "target": null, "widgetType": "highlight"}, {"classes": null, "id": null, "value": "Your school determines the loan type(s), if any, and the actual loan amount you are eligible to receive each academic year.  However, there are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate, graduate, and professional study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on", "widgetType": "paragraph"}, {"data": [{"data": [{"classes": null, "id": null, "value": "what year you are in school,", "widgetType": "paragraph"}], "listItemClass": null, "listStyleType": null, "null": "Off", "widgetType": "list_item"}, {"data": [{"classes": null, "id": null, "value": "whether you are a dependent or <a class=\"glossary-term\" data-glossary-href=\"/glossary/independent-student.json\">independent student</a>,", "widgetType": "paragraph"}], "listItemClass": null, "listStyleType": null, "null": "Off", "widgetType": "list_item"}, {"data": [{"classes": null, "id": null, "value": "your enrollment status (full-time or less than full-time),", "widgetType": "paragraph"}], "listItemClass": null, "listStyleType": null, "null": "Off", "widgetType": "list_item"}, {"data": [{"classes": null, "id": null, "value": "the program of study in which you\u2019re enrolled, and", "widgetType": "paragraph"}], "listItemClass": null, "listStyleType": null, "null": "Off", "widgetType": "list_item"}, {"data": [{"classes": null, "id": null, "value": "if you\u2019re eligible for the <a href=\"/announcements-events/big-updates/definitions#loan-limits-exception\">pre-<em>OBBBA</em> limit</a>.", "widgetType": "paragraph"}], "listItemClass": null, "listStyleType": null, "null": "Off", "widgetType": "list_item"}], "listStyleType": null, "listType": "ul", "null": "Off", "reversed": "False", "start": null, "widgetType": "list"}, {"classes": null, "id": null, "value": "If you are a <a class=\"glossary-term\" data-glossary-href=\"/glossary/dependent-student.json\">dependent student</a> whose parents are not eligible for a <a href=\"/understand-aid/types/loans/plus\">Direct PLUS Loan</a>, you may be able to receive additional Direct Unsubsidized Loan funds.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "<a href=\"/announcements-events/big-updates/definitions#loan-limits-exception\">Review our detailed charts explaining the new annual loan limits and the pre-OBBBA exceptions</a>.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "<strong>Note:</strong> the graduate and professional aggregate limit can include up to $65,500 in subsidized loans that were received for periods of graduate enrollment that began before July 1, 2012 (when availability for subsidized loans ended for graduate students). Additionally, the lifetime maximum loan limit for these borrowers can&#039;t exceed $65,500 in subsidized loans inclusive of undergraduate borrowing.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "If the total loan amount you receive at the undergraduate, graduate, or professional level exceeds the aggregate limit for that level, you&#039;re not eligible to receive additional loans at that level. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit for that level, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit for that level.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "If the total loan amount you receive over the course of your education reaches the aggregate lifetime loan limit, you are not eligible to receive additional loans.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Graduate and professional students eligible for the limited exception and enrolled in certain health profession programs may receive additional Direct Unsubsidized  Loan  amounts each academic year beyond those shown in <a href=\"/announcements-events/big-updates/definitions#loan-limits\">the loan limit charts</a>. For these students, there is also a higher aggregate limit on Direct Unsubsidized Loans. This will only be available through the 2028\u201329 <a class=\"glossary-term\" data-glossary-href=\"/glossary/award-year.json\">award year</a> for students eligible for the limited exception. If you are enrolled in a health profession program, talk to the <a class=\"glossary-term\" data-glossary-href=\"/glossary/financial-aid-office.json\">financial aid office</a> at your school for information about annual and aggregate limits.", "widgetType": "paragraph"}, {"headerSize": "2", "id": "eligibility", "value": "Who is Eligible", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "To receive either type of loan, you must be enrolled at least half-time at a school that participates in the <a class=\"glossary-term\" data-glossary-href=\"/glossary/direct-loan.json\">Direct Loan</a> Program. Generally, you must also be enrolled in a program that leads to a degree or certificate awarded by the school. Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to undergraduate, graduate, and professional degree students. You are not required to show financial need to receive a Direct Unsubsidized Loan.", "widgetType": "paragraph"}, {"headerSize": "2", "id": "how-apply", "value": "How to Apply", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "To apply for a Direct Loan, you must first complete and submit the <a href=\"/h/apply-for-aid/fafsa\"><em>Free Application for Federal Student Aid</em> (FAFSA<sup>\u00ae</sup>) form</a>. Your school will use the information from your <a class=\"glossary-term\" data-glossary-href=\"/glossary/fafsa-form.json\">FAFSA form</a> to determine how much student aid you are eligible to receive. Direct Loans are generally included as part of your <a class=\"glossary-term\" data-glossary-href=\"/glossary/financial-aid-package.json\">financial aid package</a>.", "widgetType": "paragraph"}, {"headerSize": "2", "id": "interest-rates", "value": "Loan Interest Rates and Fees", "widgetType": "text_header"}, {"data": [{"data": [{"classes": null, "id": null, "value": "The interest rates for Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after July 1, 2026, and before July 1, 2027, are shown in the chart below.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "<table class=\"table standard\"><tr><th scope=\"col\" colspan=\"1\" rowspan=\"1\" alignment=\"left\" class=\"text-left\"><div>Undergraduate Borrowers</div></th><th scope=\"col\" colspan=\"1\" rowspan=\"1\" alignment=\"left\" class=\"text-left\"><div>Graduate or Professional Borrowers</div></th></tr><tr><td colspan=\"1\" rowspan=\"1\" class=\"text-left fsa-no-border fsa-cell-shade\"><div><strong>6.52%</strong></div></td><td colspan=\"1\" rowspan=\"1\" class=\"text-left fsa-no-border fsa-cell-shade\"><div><strong>8.07%</strong></div></td></tr><tr><td colspan=\"1\" rowspan=\"1\" class=\"text-left fsa-no-border fsa-cell-shade\"><div>Direct Subsidized Loans and Direct Unsubsidized Loans</div></td><td colspan=\"1\" rowspan=\"1\" class=\"text-left fsa-no-border fsa-cell-shade\"><div>Direct Unsubsidized Loans</div></td></tr></table>", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "<strong>Note:</strong> The interest rates shown above are fixed rates for the life of the loan.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Got other questions about interest?", "widgetType": "paragraph"}, {"data": [{"classes": null, "id": null, "value": "<a href=\"/understand-aid/types/loans/interest-rates\">Understanding interest rates and fees</a>\u2014Find out how interest is calculated.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "<a href=\"/understand-aid/types/military\">Information for military members</a>\u2014If you are a member of the military, you may be eligible for special interest benefits relating to your federal student loans.", "widgetType": "paragraph"}], "listStyleType": null, "listType": "ul", "null": "Off", "reversed": "False", "start": null, "widgetType": "list"}], "title": "What are the current interest rates?", "widgetType": "accordion_item"}, {"data": [{"classes": null, "id": null, "value": "All Direct Subsidized Loans and Direct Unsubsidized Loans have a loan fee. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage for all Direct Subsidized and Unsubsidized loans first disbursed on or after Oct. 1, 2020, is 1.057%. Loans first disbursed before that date had different loan fees.", "widgetType": "paragraph"}], "title": "What are the loan fees?", "widgetType": "accordion_item"}], "null": "Off", "widgetType": "accordion"}, {"classes": null, "id": null, "value": "<b></b>", "widgetType": "paragraph"}, {"headerSize": "2", "id": "steps-to-receive", "value": "Steps to Accept a Loan", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "If your financial aid package includes federal student loans, your school will tell you how to accept the loan.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "If it is your first time receiving a Direct Loan, you will be required to", "widgetType": "paragraph"}, {"data": [{"data": [{"classes": null, "id": null, "value": "complete <a href=\"/entrance-counseling\">entrance counseling</a>, a tool to ensure you understand your obligation to repay the loan; and", "widgetType": "paragraph"}], "listItemClass": null, "listStyleType": null, "null": "Off", "widgetType": "list_item"}, {"data": [{"classes": null, "id": null, "value": "sign a loan contract called a <em><a href=\"/mpn\">Master Promissory Note</a></em>, agreeing to the terms of the loan.", "widgetType": "paragraph"}], "listItemClass": null, "listStyleType": null, "null": "Off", "widgetType": "list_item"}], "listStyleType": null, "listType": "ul", "null": "Off", "reversed": "False", "start": null, "widgetType": "list"}, {"classes": null, "id": null, "value": "Contact the financial aid office at the school you are planning to attend for details regarding the process for receiving a loan at your school.", "widgetType": "paragraph"}, {"headerSize": "2", "id": "how-receive", "value": "How Funds are Delivered", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "The school will first apply your loan funds to your school account to pay for tuition, fees, <a class=\"glossary-term\" data-glossary-href=\"/glossary/room-and-board.json\">room and board</a>, and other school charges. If any additional loan funds remain, they will be returned to you. All loan funds must be used for your education expenses. <a href=\"/complete-aid-process/receive-aid\">Learn more about the process of receiving federal student aid</a>.", "widgetType": "paragraph"}, {"headerSize": "2", "id": "contact", "value": "Loan Servicer\u2019s Role", "widgetType": "text_header"}, {"data": [{"classes": null, "id": null, "value": "When you receive your Direct Loan, you will be contacted by your loan servicer (you repay your loan to the loan servicer). Your loan servicer will provide regular updates on the status of your Direct Loan, and any additional Direct Loans that you receive.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repayment. During this period, you&#039;ll receive repayment information from your loan servicer, and you&#039;ll be notified about your first payment due date. Payments are usually due monthly. Learn more about repaying your loan.", "widgetType": "paragraph"}], "listStyleType": null, "listType": "ul", "null": "Off", "reversed": "False", "start": null, "widgetType": "list"}, {"headerSize": "2", "id": "when-repay", "value": "Loan Repayment", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repayment. During this period, you&#039;ll receive repayment information from your loan servicer, and you&#039;ll be notified of your first payment due date. Payments are usually due monthly. <a href=\"/h/manage-loans\">Learn more about repaying your loan</a>.", "widgetType": "paragraph"}, {"headerSize": "2", "id": "repayment-plans", "value": "Loan Repayment Plans", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "The repayment plans available to you will depend on when you receive your loan. Your loan servicer can help you understand which repayment options are available to you. Generally, you\u2019ll have 10 to 30 years to repay your loan, depending on the repayment plan that you choose. <a href=\"/manage-loans/repayment/plans\">Learn more about your repayment options</a>.", "widgetType": "paragraph"}, {"headerSize": "2", "id": "trouble-repaying", "value": "Loan Deferment and Forbearance", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "If you are unable to make your scheduled loan payments, contact your loan servicer immediately. Your loan servicer can help you understand your options for keeping your loan in good standing. For example, you may wish to change your repayment plan to lower your monthly payment or request a deferment or forbearance that allows you to temporarily stop or lower the payments on your loan. <a href=\"/manage-loans/lower-payments/get-temporary-relief\">Learn more about deferment or forbearance options</a>.", "widgetType": "paragraph"}, {"headerSize": "2", "id": "cancel-or-borrow-less", "value": "How to Cancel a Loan", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "Before your loan money is disbursed, you may cancel all or part of your loan at any time by notifying your school. After your loan is disbursed, you may cancel all or part of the loan within certain time frames. Your promissory note and additional information you receive from your school will explain the procedures and time frames for canceling your loan.", "widgetType": "paragraph"}, {"headerSize": "2", "id": "forgiveness-discharge", "value": "Loan Forgiveness or Discharge", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "Under certain conditions, you may be eligible to have all or part of your loan discharged or forgiven (canceled). <a href=\"/manage-loans/forgiveness-cancellation\">Find out about loan cancellation, discharge, or forgiveness</a>.", "widgetType": "paragraph"}, {"headerSize": "2", "id": "info-about-loans-received", "value": "Find Your Student Loan Information", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "Visit \u201c<a href=\"/fsa-id/sign-in\">My Aid</a>\u201d to view information about all of the federal student loans and other financial aid you have received and to find contact information for the loan servicer for your loans.", "widgetType": "paragraph"}], "metadata": [{"type": "description", "value": "Direct Subsidized Loans and Direct Unsubsidized Loans are low-interest loans for eligible students to help cover the cost of college or career school.", "widgetType": "metadata"}, {"type": "keywords", "value": "financial aid for college, student loans, government loans, private student loans, loans for students, nlsds, public service loan forgiveness, national student loan data system, stafford loan repayment, stafford loan forgiveness, student debt, stafford loan requirements, federal subsidized loan, what is a subsidized loan, stafford loan limits, what is an unsubsidized loan, subsidized stafford loan, federal stafford loan, direct stafford loan, unsubsidized loan, federal student loan, student loan repayment", "widgetType": "metadata"}, {"type": "page_audience", "value": "customer", "widgetType": "metadata"}, {"type": "page_category", "value": "Content", "widgetType": "metadata"}, {"type": "user_journey", "value": "Apply for and Receive Aid", "widgetType": "metadata"}], "pageLayout": "static_page_273", "pageTemplate": "default", "pageTitle": "Subsidized and Unsubsidized Loans", "preface": [{"alignment": "left", "data": [{"headerSize": "1", "id": null, "value": "Direct Subsidized and Direct Unsubsidized Loans", "widgetType": "text_header"}], "null": "Off", "type": "large", "widgetType": "hero"}, {"data": [{"href": "/", "value": "Home", "widgetType": "anchor"}, {"href": "/h/understand-aid", "value": "Understand Aid", "widgetType": "anchor"}, {"href": "/understand-aid/types", "value": "Types of Financial Aid", "widgetType": "anchor"}, {"href": "/understand-aid/types/loans", "value": "Loans", "widgetType": "anchor"}, {"href": "/understand-aid/types/loans/subsidized-unsubsidized", "value": "Subsidized and Unsubsidized Loans", "widgetType": "anchor"}], "widgetType": "breadcrumb"}], "prologue": [], "secondaryContent": [], "sideNav": [{"generate": "True", "widgetType": "side_nav"}], "summary": "", "translatable": false}