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 4.99% for Direct Subsidized/Unsubsidized loans first disbursed on or after July 1, 2022 and before July 1, 2023

  • Net origination fee of 1.057% for Direct Subsidized/Unsubsidized loans first disbursed on or after July 1, 2021 and before July 1, 2023

Application Process


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
  • have a valid FAFSA on file for the corresponding academic year

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 my.fordham.edu/finaid to accept or decline your loans online or return a signed copy of the award letter to your appropriate campus.


To receive a Direct Loan, undergraduate students should complete our Summer Undergraduate Direct Loan Request Form. You must select the 22-23 award year at the top right corner of the page before completing the form. Keep in mind that summer Direct Loan eligibility is determined by subtracting the amount(s) you borrowed during the fall 2022 and/or spring 2023 terms from your annual loan limit.