William D. Ford Federal Direct Subsidized Loans

Subsidized loans are only available to students who demonstrate financial need. This loan type is also a popular option for many students because interest does not accrue until after you graduate or leave school. There is a time limit on how long you can receive a subsidized loan. Learn More

Who Can Borrow

Undergraduate students and students who are eligible to complete a FAFSA. You must apply every year.

Annual Loan Limits

How much you can borrow is based on your academic year level, cost of education, and your financial need.

When Does Repayment Start

You must start paying back your loan after you graduate, leave school, or drop below half-time enrollment. Repayment starts after your six-month grace period has ended.

Interest Rates and Fees

Fixed rates are based on first disbursement. The Department of Education pays the interest while you are enrolled least half-time, and for the first six months after you leave school (grace period) or periods of deferment. Origination fees are fixed annually and subtracted by the Department of Education prior to disbursing the funds to your Zot Account. For current interest rates and fees, visit the Student Aid website.

Promissory Note

First-time borrowers must complete a Master Promissory Note (MPN). To find out more, visit the U.S. Department of Education.

Entrance Counseling

First-time borrowers must complete an online entrance counseling to ensure that you understand the responsibilities and obligations you are assuming. Learn more about Entrance Counseling.

Exit Counseling

Exit counseling is required upon your graduation or leaving school. Exit counseling provides important information to prepare you to repay your loan and to review the repayment choices. Learn more about Exit counseling.

Repayment Plans

The Department of Education provides several repayment plans. Estimate your repayment and find the right repayment plan for you.

Student Loan Servicer

A loan servicer will be handling your loan. This service is free to you. The U.S. Department of Education will inform you who your servicer will be. It is important that you maintain contact with them as they will assist you with repayment plans and loan consolidation. Learn more about student loan servicers.