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Federal Subsidized Loans

Federal subsidized loans are need-based. Subsidized means interest does not accrue while you are in school.

For subsidized loans first disbursed between July 1, 2023 and June 30, 2024, the interest rate is 5.50%. Interest does not accrue while you are in school at least half-time and for six months after graduation/dropping below half-time. If you For interest rates in previous academic years, go to


  • Available to undergraduate students only
  • Must be enrolled at least half-time (6 credits)
  • Must be a US citizen or eligible non-citizen; International students are not eligible
  • Apply through the FAFSA and qualify for financial need

Subsidized Loan Amounts

View Maximum Loan Amounts

Loans are typically awarded for fall and winter semesters, with the loan amount split so that half is applied to your fall account and the other half is applied to your winter account. If you are attending spring/summer, any remaining loan funds not borrowed during fall and winter will be packaged for spring/summer. If you are applying for aid during winter semester and did not attend fall semester, the loan will be packaged for winter only.

Amounts are based on your year in school, dependency status (determined by the FAFSA), and financial need. Amounts listed are annual maximum amounts-you may be awarded less. When the loan is posted to your account, the government keeps a small portion (about 1%) for loan processing. 

View MyAid Dashboard for your specific loan eligibility.

Grace Period and Repayment

Each federal subsidized loan is allowed a one-time, 6-month grace period after you leave school, graduate, or drop below half-time enrollment. During the grace period, interest does not accrue on the subsidized loan. Once the grace period has ended, your loan will go into repayment, and interest will begin accruing. If you return to school at least half-time before your grace period ends, you will receive the full six-month grace period when you stop attending school or drop below half-time enrollment again. However, if you do not re-enroll before your grace period ends, you will not receive a second grace period when you stop attending school at least half-time again. Your loan will immediately go into repayment as of the date you stop attending at least half-time.

Entrance Counseling

If you are borrowing a subsidized or unsubsidized loan for the first time, you will be required to complete an Entrance Counseling session. Entrance Counseling is available at, and provides information about repayment options, terms and conditions of loans, and loan repayment estimates. You will need to complete Entrance Counseling before the loan can disburse to your account.

Master Promissory Note

The Master Promissory Note (MPN) is a document you sign promising to repay the loan you borrow. It also contains terms and conditions of the loan. The promissory note is valid for multiple subsidized and unsubsidized loans and is generally good for 10 years if you borrow a loan on it within a year. After 10 years, you will need to sign a new MPN.

Helpful Links

Loan Repayment