Federal Sub Stafford
Direct Subsidized Loans are available to undergraduate students with financial need.
Southwestern University determines the amount you can borrow, and the amount may not exceed your financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan:
- While you’re in school at least half-time
- During a period of deferment (a postponement of loan payments).
*Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
How To Apply
Steps are to be completed by the student, and are only required for first-time borrowers. Begin the process on the Direct Loan website.
Important message for first-time Direct Loan Borrowers: Until you’ve completed the steps below, your loan funds will not be disbursed to the school.
- Sign in using your (student) FSA ID from the FAFSA process
- Click the link to “Learn what it means to take out a federal student loan” and click “Start”
- It should take 30 minutes to complete
- Go back to your student dashboard and click on “Sign your Master Promissory Note (MPN) Complete and sign a Master Promissory Note (MPN).
Both items will be sent to Southwestern electronically. Email firstname.lastname@example.org with any questions.