Direct Subsidized Loan

The Ford Federal Direct Subsidized Loan is a need-based program subsidized by federal funds that allows you to borrow money interest-free while you are in school at least half time.

The interest rate is fixed at 6.8 percent, effective July 1, 2006.
For undergraduate students, the interest rate is fixed at 6% for loans disbursed between 7/1/08 though 6/30/09.
For all other students, including graduate and professional students, the interest rate is fixed at 6.8% for loans disbursed between 7/1/08 and 6/30/09.
A 2.5 percent origination fee is deducted from each disbursement. A 1.5 percent rebate is currently added back to your disbursement. As of July 1, 2008, the origination fee will drop to 2.0 percent with the 1.5 percent rebate added back to your disbursement.
Repayment begins six months after you graduate, withdraw, or your enrollment drops below half-time status. Full details are provided on your promissory note.

Promissory Note Required:

If you accept a Federal Subsidized Direct Loan, you can sign the required Master Promissory Note (MPN) electronically at the U.S. Department of Education's MPN Web site. You will need to have your Department of Education (ED)-issued PIN to begin the process. If you do not have your PIN, please visit the official PIN site. After accepting your loan, you will be sent an e-mail directing you to complete your MPN. Your loan will not be disbursed until OSF receives notification from ED that you have completed your MPN.

The electronic MPN can be used to make one or more loans for one or more academic years (up to 10 years). If you have completed a MPN since July 1, 1999, and you have not gone over 12 months between disbursements, you will not be required to complete an additional promissory note for your Direct Subsidized or Unsubsidized Loan.