In order to qualify for a direct subsidized loan, you must apply for financial aid through your school by filling out the Free Application for Federal Student Aid (FAFSA), and prove your eligibility. To be eligible for a subsidized loan, you must: Be an undergraduate student. Be able to prove financial need.

How do I get my subsidized loan money?

How will I receive my Direct Subsidized Loan or Direct Unsubsidized Loan funds? The school will first apply the loan funds to your school account to pay for tuition, fees, room and board as well as any other school charges. Any additional loan funds will be returned to you.

What is the first step in applying for student loans?

How to apply for student loans

1. Step 1: Before applying for a student loan, exhaust all other financial aid.
2. Step 2: Understand your student loan options.
3. Step 3: Gather all your financial information.
4. Step 4: Complete the FAFSA.
5. Step 5: Submit a CSS profile for institutional financial aid.

Is it better to accept subsidized or unsubsidized loans?

You should accept the subsidized loan first because it has more benefits. If you have to accept an unsubsidized loan, remember that you’re responsible for all the interest that accrues on that loan.

How can getting a subsidized loan help you while you are in school?

With a subsidized direct loan, the bank, or the government (for Federal Direct Subsidized Loans, also known as Subsidized Stafford Loans) is paying the interest for you while you’re in school (a minimum of half time), during your post-graduation grace period, and if you need a loan deferment.

What are the 4 types of student loans?

There are four types of federal student loans available:

• Direct subsidized loans.
• Direct unsubsidized loans.
• Direct PLUS loans.
• Direct consolidation loans.

Do student loans go directly to the school?

Both federal and private loans are disbursed directly to your school, which takes out tuition, fees and room and board if you live on campus. Any remaining funds from the loan will be distributed to you, according to your school’s policy.

How do I get financial aid for college?

To apply for need-based financial aid, file the Free Application for Federal Student Aid (FAFSA) at fafsa.ed.gov starting on October 1 of the senior year in high school and annually thereafter. The FAFSA provides access to financial aid from the federal and state government, as well as most colleges.

Is FAFSA first come first serve?

You should fill out the FAFSA as soon as possible after it opens — even if you don’t think you qualify for aid — as some aid is first come, first served. The FAFSA application is open for about 20 months, and you can receive money for a school year retroactively.

Do you have to pay FAFSA back?

FAFSA is not the financial aid itself, so you do not have to pay it back. Federal student aid that is awarded based on the FAFSA includes the Federal Pell Grant, Federal Work-Study and federal student loans. The FAFSA is also used to award state grants and institutional grants from colleges and universities.

Should I accept all of my financial aid?

It’s important to know that you’re under no obligation to accept all the federal student loan money made available to you. You can accept all, some or none of the federal student loans you’re offered. Your award letter may also include scholarships or grants, which is genuinely free money you never have to pay back.

Can I pay subsidized loans while in school?

The loan remains a subsidized loan and the federal government will continue to pay the interest that accrues during the in-school and grace periods. Prepayments have the same effect regardless of whether they are made during or at the end of the in-school and grace periods.

How does a subsidized loan work?

Subsidized Loans are loans for undergraduate students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods.

Who is eligible for unsubsidized student loans?

Direct Unsubsidized Loans are available to undergraduate, graduate, or professional degree students enrolled at least half-time at a school that participates in the Direct Loan Program. Financial need is not required to qualify.

Can students get loans without parents?

You don’t need any parent information to apply for federal student loans if you’re an independent student. You can borrow up to $57,000 in total federal student loans as an independent student, rather than $31,000 as a dependent student. The answers you provide on the FAFSA determine your dependency status.

Is FAFSA a loan?

The FAFSA is not a loan. The FAFSA, or Free Application for Federal Student Aid, is used to apply for several types of financial aid, including grants, student employment and federal student loans. Grants are a form of gift aid, which does not need to be repaid.