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Federal Direct Subsidized and Unsubsidized Loans

The federal government pays (subsidizes) the interest during in-school periods for subsidized loans. For unsubsidized loans, the interest which accrues during in-school and grace periods is paid by the student in repayment.

Eligibility for subsidized loans is need-based; however, you do not have to demonstrate financial need to receive an unsubsidized loan.

Students are not required to make payments on Direct Subsidized/Unsubsidized loans until after their in-school and grace periods are over.

  • Fixed interest rate of 2.75% for Direct Subsidized/Unsubsidized loans.
  • Net origination fee of 1.057%

Application Process

Academic Year (fall and spring)

Undergraduate students are offered their full Federal Direct Subsidized/Unsubsidized Loan eligibility on their award notification after completing the financial aid application process. Visit to accept or decline your loans online or return a signed copy of the award letter to your appropriate campus.


Undergraduate students must request their Summer Direct Loan using our Summer 2021 Direct Loan Request Form.

You must also have a completed a MPN and Entrance Counseling Session before you can receive Direct Subsidized/Unsubsidized Loan funds. Students who borrowed Direct Subsidized/Unsubsidized loans at Fordham since the 2009-2010 academic year do NOT have to complete another MPN or Entrance Counseling session.


To be eligible, you also must be:

  • accepted and matriculated in a degree granting program
  • making satisfactory academic progress
  • enrolled at least half-time
  • not be in default on any federal student loan