William D. Ford Federal Direct Subsidized Loans


Subsidized loans are only available to students who demonstrate financial need. This loan type is also a popular option for many students because interest does not accrue until after you graduate or leave school. There is a time limit on how long you can receive a subsidized loan

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Who Can Borrow


Undergraduate students and students who are eligible to complete a FAFSA. You must apply every year.

Annual Loan Limits


How much you can borrow is based on your academic year level, cost of education, and your financial need.

When Does Repayment Start


You must start paying back your loan after you graduate, leave school, or drop below half-time enrollment. Repayment starts six-month (grace period) before you are required to begin repayment.

Interest Rates and Fees


Fixed rates are based on first disbursement.

The Department of Education pays the interest while you are enrolled least half-time, and for the first six months after you leave school (grace period) or periods of deferment.

Origination fees are fixed annually and subtracted by the Department of Education prior to disbursing the funds to your Zot Account.

For current interest rates and fees, visit the Student Aid website.

Promissory Note


First-time borrowers must complete a Master Promissory Note (MPN). To find out more, visit the U.S. Department of Education.

Entrance Counseling


First-time borrowers must complete an online entrance counseling to ensure that you understand the responsibilities and obligations you are assuming.

Learn more about Entrance Counseling.

Annual Student Loan Acknowledgment


Starting in the 2022-2023 school year, borrowers of Federal Subsidized, Unsubsidized, and PLUS loans will be required to complete this process once each award year before receiving disbursement of their loan.

Exit Counseling


Exit counseling is required upon your graduation or leaving school. Exit counseling provides important information to prepare you to repay your loan and to review the repayment choices.

Learn more about Exit counseling.

Repayment Plans


The Department of Education provides several repayment plans. Estimate your repayment and find the right repayment plan for you.

Student Loan Servicer


A loan servicer will be handling your loan. This service is free to you. The U.S. Department of Education will inform you who your servicer will be. It is important that you maintain contact with them as they will assist you with repayment plans and loan consolidation. Learn more about student loan servicers.

For more information on eligibility


Visit the U.S. Department of Education.

Dependent Undergraduate Students

Subsidized Base Amount*
Unsubsidized Amount
Additional Unsubsidized for students whose parents were denied a PLUS loan
First Year
$3500
$2000
$4000
Second Year
$4500
$2000
$4000
Third-Year and Beyond
$5500
$2000
$4000

Footnotes:

*Base Amount: Loan is need based; this amount could be 100% Subsidized or combination of subsidized and unsubsidized.

Independent Undergraduate Students

Subsidized Base Amount*
Unsubsidized Amount
First Year
$3500
$6000
Second Year
$4500
$6000
Third-Year and Beyond
$5500
$7000

Footnotes:

*Base Amount: Loan is need based; this amount could be 100% Subsidized or combination of subsidized and unsubsidized.