federal-direct-loan-subsidized

The Federal Direct Subsidized Loan has more favorable terms to help out students with financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan while a student is in school at least half-time, for the first six months after a student leaves school (referred to as a grace period), and during a period of deferment (a postponement of loan payments). Direct Subsidized Loans are available only to undergraduate students who have financial need.