Federal Direct Subsidized Loan
Subsidized Loans are available to undergraduate students with financial need. The award amount is determined by the Cost of Attendance minus the Expected Family Contribution and other financial aid (such as grants and scholarships). The U.S. Department of Education pays the interest on Subsidized Loans while the student is in school at least half time, for the first six months after the student leaves school (referred to as a grace period), and during a period of deferment (a postponement of loan payments).
How to Apply
To apply for the Subsidized Loan, the student must complete the FAFSA. To receive the Subsidized loan, the student must be enrolled at least half-time (six credit hours), maintain Satisfactory Academic Progress, and be enrolled in a program that leads to a degree or a certificate awarded by the school. If the student is eligible for a Subsidized Loan, the award amount will be posted on the student’s award letter on CougarNet.
Note: All first-time borrowers must complete Entrance Counseling and a Master Promissory Note (MPN) at StudentLoans.gov. Master Promissory Notes are valid for 10 years. If the student is a transfer student and previously received loans, please contact our office.
Loan Fees
There is a loan fee on all Subsidized Loans. The loan fee is a percentage of the loan amount and is deducted from each loan disbursement.
Current Interest Rates
View current Federal Direct Loans interest rates and learn how interest is calculated.
How Will I Receive My Loan?
SIUE will apply the loan funds to the student's school account to pay for tuition, fees, room and board, and other school charges. If any additional loan funds remain, they will be returned to the student. All loan funds must be used for the student's educational expenses. All refunds are disbursed by the Office of the Bursar.
When Will Loan Repayment Begin?
Federal student loan repayment begins after the student's six month grace period expires. See our Loan Repayment page for more information.
