Indiana College Costs Estimator

Subsidized Direct Loan (Formerly Stafford Loan)

  • Federal student loans awarded on the basis of financial need that is not met by Pell Grants, Federal Supplemental Educational Opportunity Grants or other financial aid. Financial need is determined by completion of the Free Application for Federal Student Aid (FAFSA).
  • Students have six months after graduating, leaving school or dropping below half-time status before beginning repayment. (This is called the grace period.)
  • The student does not have to pay any principal while in school and the government pays the interest during this time. The same rules also apply during the grace period and during an authorized period of deferment. However, for Direct Subsidized loans made on or after July 1, 2012 and before July 1, 2014, the interest subsidy provided during the six-month grace period has been eliminated.
  • Interest rate: Fixed at 4.29% for subsidized loans first disbursed between 7/1/2015 and 6/30/2016.
  • Current loan limits: $3,500 (first year), $4,500 (second year), $5,500 (third and fourth years), plus $2,000 of additional unsubsidized Direct Loan each year; maximum amount for dependent undergraduate students (total) = $23,000 (subsidized) + $8,000 of total additional unsubsidized Direct Loan. Independent undergraduates and dependent students whose parents cannot get PLUS loans may be eligible to borrow additional funds.