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Direct Subsidized Student Loan

(Formerly Stafford Loan) Federal student loans awarded on the basis of financial need that is not met by federal Pell Grants, Federal Supplemental Educational Opportunity Grants, state grants, or other forms of financial aid. Financial need is determined by completion of the FAFSA. With Direct Subsidized Student Loans, the student does not have to pay any principal while in school more than half time and the government pays the interest during this time. 

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