Federal Direct Subsidized Loan
A loan funded by the U.S. Department of Education that is awarded by the UGA Office of Student Financial Aid (OSFA) to eligible undergraduate students who have Unmet Need. The Department of Education defers repayment of the loan principal and pays the interest on the loan while the student is enrolled at least half-time (6 hours), and for the first six months after the student graduates, leaves school, or enrolls in fewer than 6 hours, and during a period of deferment.
See Federal Direct Loan Interest Rates for Subsidized Loan interest.
See Federal Direct Loan Origination Fees for the Subsidized Loan fee.
- Complete the Free Application for Federal Student Aid (FAFSA) process.
- The UGA Office of Student Financial Aid (OSFA) will include the loan amount for which the student is eligible on his or her Award in Athena which the student must then accept or decline.
- If a first-time borrower at UGA, or if otherwise required, the student must complete the Entrance Counseling and Master Promissory Note applicable to Federal Direct Subsidized/Unsubsidized Loans. See the Undergraduate Students section under Federal Direct Loan (FDL) Application Steps for more information.
- The Award Year loan amount cannot exceed the applicable Annual Limits or the student’s unmet need.
- Undergraduate fourth-year students (seniors) should also see Prorating Undergraduate Subsidized & Unsubsidized Annual Loan Limits.
- The minimum loan amount is $100 per semester.
- meet all Basic Student Eligibility criteria, and
- cannot have reached their Federal Subsidized Loan Aggregate Limit, and
- cannot have reached their Federal Direct Subsidized Loan Eligibility Time Limitation (150% Rule)
- must be enrolled in at least half-time (6 hours) to be eligible for that semester’s subsidized loan.