Federal Direct Subsidized Stafford Loan | Financial Aid Office | SIU

A Federal Direct Subsidized Stafford Loan is offered as a need-based loan after grants, scholarships and other resources are subtracted or up to the annual maximum loan limit, whichever is lower. It is the U.S. Department of Education's major form of self-help aid and is available through the William D. Ford Federal Direct Loan Program. The federal government pays the interest on the loan until your repayment begins.  Fees of up to 1.057% will be charged and deducted proportionately from each loan disbursement.

For undergraduate students, the interest rate for Federal Direct Subsidized loans disbursed between July 1, 2024 - June 30, 2025 is 6.53%. 

Federal Direct Subsidized loans are not available for graduate/professional students. 

To Apply for a Federal Direct Subsidized Loan

To apply for a Federal Direct Subsidized Loan, the student must complete the FAFSA. If the student is eligible for a Federal Direct Subsidized Loan, the offer amount will be posted on the student’s electronic Offer Letter on SalukiNet.

A student is eligible to be considered for the Federal Direct Subsidized Stafford Loan if they:

• have a valid SAI on file in the Financial Aid Office.
• are enrolled in an eligible program on at least a half-time basis.
• are making satisfactory academic progress.
• have not already borrowed the maximum aggregate Federal Direct Stafford Loan amount.
• are not ineligible for other reasons.

To Accept/Reduce/Decline a Federal Direct Subsidized Loan

The student must accept or decline a Federal Direct Subsidized Loan on the electronic Offer Letter on SalukiNet by selecting “Accept” or “Decline” in the dropdown box on the Offer Letter Accept/Decline Offers page.  The student can reduce the loan amount by selecting “Accept” in the dropdown box and entering a lower amount in the “Partial Accept” field.  If the student wishes to request loan changes, they should use the “Request Changes” on the Offer Letter Information Request page of the electronic Offer Letter.

The first time a loan is accepted, the student must complete a Electronic Master Promissory Note. The loan will then be credited to the student's SIUC account, divided into two payments for the academic year. The student will also be required to participate in an Entrance Loan Counseling session.

All or part of the loan can be canceled within 90 days of the date the school notifies the student that the loan has been credited to their account.  Loan funds will first be used to pay for tuition, fees, food and housing. If funds remain after these charges have been paid, the student will receive the remaining funds by check.