This Federal Direct Subsidized Stafford/Ford Loan is a deferred interest loan based on financial need. This means that you accrue no interest on the loans while you are attending school at least half-time. The interest rate for Subsidized loans is fixed at 4.5% for undergraduates and 6.8% for graduates (if the first disbursement date is between July 1, 2010, and June 30, 2011). Subsidized loans will have an origination fee of 1%. If you do not make the first 12 payments of your loan on time once you enter repayment, you will lose your rebate.

Students who will be borrowing under the Subsidized Loan Program must complete Loan Entrance Counseling and a Master Promissory Note (MPN) prior to having loan funds disbursed.

The MPN and Loan Entrance Counseling can be completed at

To complete your MPN you will:

  • Click on the green login button on the left and use your FAFSA pin # to login.
  • Click “Complete Master Promissory Note”
  • Choose “Subsidized/Unsubsidized”, follow all instructions through to the end.
  • When submitting the MPN you will sign it electronically with your FAFSA Pin #.
  • At the end of the MPN, be sure to submit your signature, view the html, and then submit a second time to ensure processing.

To complete your Direct Loan Entrance Counseling:

  • Click "Complete Loan Entrance Counseling"
  • Follow all prompts throught to the end
  • Loan entrance counseling requires you to read information about student loans and then follow this up by answering questions about the loans.

Repayment of Subsidized loans begins six months after a student graduates, leaves school, or drops below half-time enrollment. This loan is also available to part-time students as long as they are registered in at least 6 credits as an undergraduate student or 5 credits as a graduate student. Graduate students must be fully admitted to a master's program to borrow at graduate levels.

In order to be eligible to borrow under the Subsidized Student Loan Program, students must have “remaining need” after their Expected Family Contribution and any other need-based awards are deducted from their Cost of Attendance at SOU.

Click here to see the Loan Limits for Subsidized and Unsubsidized Loans.

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