Subsidized Federal Direct Loans

Page address: http://www.mnsu.edu/campushub/loans/federaldirect/sub/

The Subsidized Federal Direct Loan is considered a NEED-based loan.  NEED is defined as the difference between the institution’s Cost of Attendance (COA) and the Expected Family Contribution (EFC) that was determined from the Free Application for Federal Student Aid (FAFSA).  

Funding from Subsidized Federal Direct Loan programs can never exceed the student’s NEED.  Because the Subsidized Federal Direct Loan is considered a NEED-based loan, the federal government pays the interest on the loan while the student is in school (a minimum of time enrollment is required as defined by the Federal Regulations and institutional policies).