The Direct Subsidized Loan is awarded on the basis of need. You will not be charged any interest prior to repayment or during any authorized periods of deferment. The federal government pays the interest on the loan until the time of repayment.
Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change.
Effective for new Direct Loans for which the first disbursement is made on or after July 1, 2013, Direct Subsidized Loan eligibility is limited to a maximum of 150% of the student’s current academic program length.
Effective for new Direct Subsidized Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014 the interest subsidy provided during the six month grace period is temporarily eliminated.
- Borrowers may receive Direct Subsidized Loans for no more than 150% of the length of the current academic program (ex: 6 years for a 4 year degree)
- Once a borrower has received Direct Subsidized Loans for 150% of the length of their program, the borrower’s future Subsidized Loan eligibility will end.
- A student who has received Direct Subsidized Loans for 150% of the length of their program and continues enrollment beyond that point will lose all subsidies on previously received Direct Subsidized Loans and would be required to pay all accumulated interest.
- This policy is in addition to, and not in place of, the lifetime aggregate loan limits currently in place. Click on the Loan Limits link below to view these lifetime limits.
- You must have financial need as determined by the FAFSA.
- You must be enrolled at least half-time at Texas A&M.
- Undergraduate Students – 6 hours
- Graduate Students – 5 hours
- You must maintain Satisfactory Academic Progress.
- You may not exceed annual or lifetime aggregate loan limits.
- You may not have received Direct Subsidized Loans for more than 150% of the length of your academic program. (Applicable to borrowers receiving first loan on or after July 1, 2013).
- Award eligibility varies based on enrollment. For details, please visit the Award Proration information page.