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San Diego State University

Financial Aid and Scholarships

Subsidized and Unsubsidized Loans

What’s the difference between subsidized and unsubsidized loans?

  • Subsidized — No interest or payments while you are enrolled at least half time (undergraduate students only).
  • Unsubsidized — Interest charged while you are enrolled.

Subsidized loan limitations

Subsidized Eligibility Limited to 150% of your Undergraduate Program

  • If you borrowed a Direct Loan for the first time on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years, not units completed) that you can receive Subsidized Direct Loans.
  • In general, you may not receive Subsidized Direct Loans for more than 150% of the published length of your program. (For example, 150% of a 4-year undergraduate program = 6 years.)
  • More information is available from Federal Student Aid at the U. S. Department of Education (PDF; download Adobe Acrobat Reader, if needed).

Graduate students eligible for unsubsidized loans only

As of July 1, 2012, graduate students may borrow only unsubsidized Direct Loans.

  •  For graduate amounts, the interest begins to accrue once the loan is disbursed.
  •  The federal interest subsidy continues to apply to subsidized loan amounts borrowed before July 1, 2012.

    Federal Direct Student Loans: Subsidized and Unsubsidized

    Loan Components
    Subidized Loan:
    Based on Financial Need
    Unsubsidized Loan:
    Not Based on Financial Need
     Enrollment Requirement
     Must enroll at least half time 
    Must enroll at least half time
     Loan Fee
    1.062% of the amount borrowed of a loan first disbursed on or after October 1, 2018

    1.062% of the amount borrowed of a loan first disbursed on or after October 1, 2018

     Interest Rate:
    Undergraduate Student

    Interest rates are subject to change every July 1

    4.53% fixed rate on loans funded on or after July 1, 2019 - June 30, 2020 

    If you received your first Direct Loan after July 1, 2013, you will be charged interest once you have completed 150% of your undergraduate program but have not graduated. Read more about this subsidized eligibility limit.

    Interest rates are subject to change every July 1

    4.53% fixed rate on loans funded on or after July 1, 2019 - June 30, 2020  

     Interest Rate: Teaching
    Credential Student

    Interest rates are subject to change every July 1

    4.53% fixed rate on loans funded on or after July 1, 2019 - June 30, 2020  

    Interest rates are subject to change every July 1

    4.53% fixed rate on loans funded on or after July 1, 2019 - June 30, 2020  

     Interest Rate:
    Graduate Student
    Note: There are no federally subsidized loans for graduate students on amounts borrowed after June 30, 2012.

    Interest rates are subject to change every July 1

    6.08% fixed rate on loans funded on or after July 1, 2019 - June 30, 2020   

     Capitalized Interest
    No interest is charged while enrolled at least half time.

    If you received your first Direct Loan after July 1, 2013, you will be charged interest once you have completed 150% of your undergraduate program but have not graduated. Read more about this subsidized eligibility limit.
    Interest is charged from the date the funds are disbursed and capitalizes if not paid.
     Credit History
     Not required Not required
     RepaymentBegins 6 months (your grace period) after you cease to be enrolled at least half time.

    Begins 6 months (your grace period) after you cease to be enrolled at least half time.
     
     Grace Period
    A 6-month period before the first payment must be made.

    Interest accrues and will capitalize if not paid during the grace period of loans borrowed July 1, 2012 through June 30, 2014.
    A 6-month period before the first principal payment must be made.

    Interest accrues and will capitalize if not paid during the grace period.

    StudentLoans.gov

    See studentloans.gov for information on completing the electronic Master Promissory Notes for Subsidized and Unsubsidized Loans.

    Get more info

    For detailed information on Subsidized and Unsubsidized Loans, visit the Federal Student Aid website.

    federal student aid: An Office of the US Department of Education