Federal Direct Subsidized Loan

This loan is available to undergraduate students enrolled at least half-time. This loan is federally-funded, at a fixed interest rate and subject to annual and aggregate loan limits. It is repaid to the U.S. Department of Education.  


  • File a FAFSA annually
  • A federal master promissory note (MPN) required for first-time borrowers
  • Federal loan entrance counseling required for first-time borrowers at EMU
  • Award eligibility based on EFC/SAI, cost of attendance, enrollment and other resources and may be adjusted or canceled if there is a change or you need additional resources.


  • Repayment deferred while enrolled at least half-time.
  • The U.S. Department of Education pays the interest on a direct subsidized loan
    • While you’re in school at least half-time
    • For the first six months after you leave school (grace period*) and
    • During a period of deferment (a postponement of loan payments).
      *Note: If you receive a direct subsidized loan that is first disbursed between July 1, 2012 and July 1, 2014, you'll be responsible for paying any interest accruing during your grace period. If you don't, the interest will be added to your principal balance.
  • If you drop to less than half-time, withdraw, drop out, graduate or simply do not return to school, this information will be reported to the loan servicer and they will begin to count your grace period.

For More Information

Contact us or the Federal Student Aid system.

Skip Section Navigation