{"id":4605,"date":"2017-04-12T11:43:32","date_gmt":"2017-04-12T16:43:32","guid":{"rendered":"https:\/\/uwm.edu\/finances\/?page_id=4605"},"modified":"2026-03-26T12:11:40","modified_gmt":"2026-03-26T17:11:40","slug":"federal-direct-subsidized-loan","status":"publish","type":"page","link":"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/","title":{"rendered":"Federal Direct Subsidized Loan"},"content":{"rendered":"\n<p>Federal Direct Subsidized Loans are need-based loans offered to eligible undergraduate students. The government pays interest on the loan while a student is in school at least half-time, during the grace period, and during deferment periods. This is referred to as the interest subsidy.&nbsp;&nbsp;(Subsidized loans disbursed between July 1, 2012, and June 30, 2014, are not eligible for the six-month grace period; interest will begin to accrue on those loans as soon as the borrower is no longer enrolled at least half-time).<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>First-time borrowers who have been offered a Direct Subsidized Loan need to complete a <a href=\"https:\/\/uwm.edu\/finances\/finances\/loans\/application-process-promissory-notes\/\">Master Promissory Note (MPN)<\/a>.<\/li>\n\n\n\n<li>First-time loan borrowers must also complete <a href=\"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-loan-counseling\/\">entrance loan counseling<\/a>&nbsp;before any loan proceeds can be disbursed.<\/li>\n\n\n\n<li>Repayment begins 6 months after the borrower graduates, leaves school, or drops below half-time status.<\/li>\n\n\n\n<li>Repayment may be deferred or modified under certain conditions. There are several <a href=\"https:\/\/studentaid.gov\/manage-loans\/repayment\/plans\" target=\"_blank\" rel=\"noreferrer noopener\">repayment plans<\/a>.<\/li>\n\n\n\n<li>The amount an undergraduate can borrow is based on the estimated cost of attendance, other financial aid received, <a href=\"https:\/\/uwm.edu\/finances\/finances\/loans\/\">grade level, and the aggregate limits<\/a> established by the federal government.<\/li>\n<\/ul>\n\n\n\n<p>Find additional information on Federal Direct Loans at the <a href=\"https:\/\/studentaid.gov\/understand-aid\/types\/loans\/subsidized-unsubsidized\" rel=\"noopener noreferrer\" target=\"_blank\">U.S. Department of Education website.<\/a><\/p>\n\n\n\n<p><em>Interest Rates and Origination Fees<\/em><\/p>\n\n\n\n<p>Interest rates depend on the loan type, whether the borrower is an undergraduate or graduate student, and the first disbursement date of the loan. Origination fees of approximately 1% are deducted from the total amount of the loan. Please click here for the most recent information on&nbsp;<a href=\"https:\/\/nam02.safelinks.protection.outlook.com\/?url=https%3A%2F%2Fstudentaid.gov%2Funderstand-aid%2Ftypes%2Floans%2Finterest-rates&amp;data=05%7C02%7Cpeterbur%40uwm.edu%7C013d765a9829410fb77108ddfa002e5f%7C0bca7ac3fcb64efd89eb6de97603cf21%7C0%7C0%7C638941601199617794%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=4cTu1XSLLXoITesGneOTBrfEnE%2FFn1LHrm8ChcqG%2Bxc%3D&amp;reserved=0\" target=\"_blank\" rel=\"noreferrer noopener\">interest rates and origination fees<\/a>.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Direct Subsidized Loans are need-based loans offered to eligible undergraduate students. The government pays interest on the loan while a student is in school at least half-time, during the grace period, and during deferment periods. This is referred to &hellip;<\/p>\n","protected":false},"author":40,"featured_media":0,"parent":4033,"menu_order":4,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":"","uwm_wg_additional_authors":[3041,19586,34594,37275,33688]},"class_list":["post-4605","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Student Financial Services<\/title>\n<meta name=\"description\" content=\"Learn about UWM\u2019s Federal Direct Subsidized Loans, eligibility, interest subsidies, repayment, and requirements for first-time borrowers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Federal Direct Subsidized Loan\" \/>\n<meta property=\"og:description\" content=\"Learn about UWM\u2019s Federal Direct Subsidized Loans, eligibility, interest subsidies, repayment, and requirements for first-time borrowers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/\" \/>\n<meta property=\"og:site_name\" content=\"Student Financial Services\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-26T17:11:40+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/\",\"url\":\"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/\",\"name\":\"Federal Direct Subsidized Loan - Student Financial Services\",\"isPartOf\":{\"@id\":\"https:\/\/uwm.edu\/finances\/#website\"},\"datePublished\":\"2017-04-12T16:43:32+00:00\",\"dateModified\":\"2026-03-26T17:11:40+00:00\",\"description\":\"Learn about UWM\u2019s Federal Direct Subsidized Loans, eligibility, interest subsidies, repayment, and requirements for first-time borrowers.\",\"breadcrumb\":{\"@id\":\"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/uwm.edu\/finances\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Finances\",\"item\":\"https:\/\/uwm.edu\/finances\/finances\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Loans\",\"item\":\"https:\/\/uwm.edu\/finances\/finances\/loans\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Federal Direct Subsidized Loan\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/uwm.edu\/finances\/#website\",\"url\":\"https:\/\/uwm.edu\/finances\/\",\"name\":\"Student Financial Services\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/uwm.edu\/finances\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Student Financial Services","description":"Learn about UWM\u2019s Federal Direct Subsidized Loans, eligibility, interest subsidies, repayment, and requirements for first-time borrowers.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/","og_locale":"en_US","og_type":"article","og_title":"Federal Direct Subsidized Loan","og_description":"Learn about UWM\u2019s Federal Direct Subsidized Loans, eligibility, interest subsidies, repayment, and requirements for first-time borrowers.","og_url":"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/","og_site_name":"Student Financial Services","article_modified_time":"2026-03-26T17:11:40+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/","url":"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/","name":"Federal Direct Subsidized Loan - Student Financial Services","isPartOf":{"@id":"https:\/\/uwm.edu\/finances\/#website"},"datePublished":"2017-04-12T16:43:32+00:00","dateModified":"2026-03-26T17:11:40+00:00","description":"Learn about UWM\u2019s Federal Direct Subsidized Loans, eligibility, interest subsidies, repayment, and requirements for first-time borrowers.","breadcrumb":{"@id":"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/uwm.edu\/finances\/finances\/loans\/federal-direct-subsidized-loan\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/uwm.edu\/finances\/"},{"@type":"ListItem","position":2,"name":"Finances","item":"https:\/\/uwm.edu\/finances\/finances\/"},{"@type":"ListItem","position":3,"name":"Loans","item":"https:\/\/uwm.edu\/finances\/finances\/loans\/"},{"@type":"ListItem","position":4,"name":"Federal Direct Subsidized Loan"}]},{"@type":"WebSite","@id":"https:\/\/uwm.edu\/finances\/#website","url":"https:\/\/uwm.edu\/finances\/","name":"Student Financial Services","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/uwm.edu\/finances\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"acf":[],"_links":{"self":[{"href":"https:\/\/uwm.edu\/finances\/wp-json\/wp\/v2\/pages\/4605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/uwm.edu\/finances\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/uwm.edu\/finances\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/uwm.edu\/finances\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/uwm.edu\/finances\/wp-json\/wp\/v2\/comments?post=4605"}],"version-history":[{"count":10,"href":"https:\/\/uwm.edu\/finances\/wp-json\/wp\/v2\/pages\/4605\/revisions"}],"predecessor-version":[{"id":36100,"href":"https:\/\/uwm.edu\/finances\/wp-json\/wp\/v2\/pages\/4605\/revisions\/36100"}],"up":[{"embeddable":true,"href":"https:\/\/uwm.edu\/finances\/wp-json\/wp\/v2\/pages\/4033"}],"wp:attachment":[{"href":"https:\/\/uwm.edu\/finances\/wp-json\/wp\/v2\/media?parent=4605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}