CampusPin Glossary

Subsidized Direct Loan

A federal student loan for undergraduates with demonstrated need. The government pays the interest while the student is in school.

Subsidized Direct Loans are federal loans for undergraduates with demonstrated financial need (per FAFSA). The U.S. Department of Education pays the interest while the student is enrolled at least half-time, during the 6-month grace period after graduation, and during deferment periods. Annual limits range from $3,500 (first year) to $5,500 (third year and beyond). The interest rate is fixed each July; for 2025–2026 undergraduate Direct Subsidized loans it is approximately 6.53 %.

See also

CampusPin tools

Find colleges that match your criteria

Use CampusPin's filter-first search to narrow 3,800+ U.S. universities and community colleges by tuition, program, location, acceptance rate, school size, and more.