Federal Direct Subsidized Loan

Please note: The Federal Direct Subsidized Loan was discontinued for graduate and professional students as of July 1, 2012. The overall amount that graduate and professional students can borrow remains unchanged.

Undergraduate students who demonstrate financial need (based on their FAFSA results) may be eligible for a Federal Direct Subsidized Loan. Interest is paid by the federal government during eligible in-school, grace and deferment periods. The subsidized loan does NOT accrue interest while the student is enrolled at least half-time. There is a 6 month grace period after graduation or dropping below half-time before repayment is required.

Deadline: Apply during the current academic year

Application: Must have completed the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov and the Federal Direct Loan Application/Master Promissory Note at www.studentloans.gov

First-time borrowers at KUMC must complete the online entrance counseling at www.studentloans.gov.

Interest Rates: (fixed after July 1, 2006)

First Disbursement

Undergraduate Graduate/Professional
July 1, 2009 - June 30, 2010 5.6% 6.8%
July 1, 2010 - June 30, 2011 4.5% 6.8%
July 1, 2011 - June 30, 2012 3.4% 6.8%
July 1, 2012 - June 30, 2013 3.4% N/A
July 1, 2013 - June 30, 2014 3.86% N/A
July 1, 2014 - June 30, 2015 4.66% N/A
July 1, 2015 - June 30, 2016 4.29% N/A
July 1, 2016 - June 30, 2017 3.76% N/A

Loan Origination Fees: 

Beginning October 1st, 2016 Federal Direct Lending will deduct a 1.069% origination fee on any new Federal Direct Subsidized and Unsubsidized Loans. For loans first disbursed on or after October 1, 2015 a 1.068% origination fee will be deducted by Federal Direct Lending.

Does the subsidized loan have to be repaid? Yes. Repayment begins 6 months after graduation or dropping below half time.

Award Maximum: Depends on grade level, program and need.

Need based: Yes

Enrollment: Must be enrolled at least half-time. For specific information on undergraduate and graduate enrollment please read KUMC's Enrollment Information.

For more information please contact Student Financial Aid at 913-588-5170 or email financialaid@kumc.edu.

Last modified: Mar 07, 2017