Subsidized direct loans

Subsidized direct loans are available for students with financial needs. The university determines the amount of the loan you may receive, but this amount cannot exceed your calculated financial need.  When you get a subsidized direct loan, the U.S. Department of Education pays the interest. This happens during the time you are studying at least part-time; during the six months after leaving the university (known as the grace period*); and during an extension period (temporarily stopping the loan payments).