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Federal Direct Subsidized Stafford Loans

The Federal Direct Subsidized Stafford Loan is awarded to meet financial need after other resources are subtracted. Maximum annual loan limits apply and may limit the amount that you may borrow.

The interest rate for Federal Subsidized Stafford Loans is variable and changes every July 1st. There is also an origination fee that will be deducted before the loan proceeds are sent to the school. The origination fee is a processing fee assessed by the Department of Education.

Repayment of the loan begins six months after you are no longer enrolled at least half time (six credits) and the federal government pays interest on the loan for you during eligible periods of enrollment.

Students must accept their Federal Direct Subsidized Stafford Loan online via their myUMBC account before it can be considered as payment toward the bill. For more information on how to accept the loans online, please visit our Loan Acceptance page.

Stafford Loan Eligibility Requirements

  • You must be meeting Satisfactory Academic Progress (SAP) standards
  • You must be enrolled for at least six credits each semester
  • You must be working toward a degree or approved certificate at UMBC
  • A current year FAFSA is required
    • If the FAFSA is selected for verification, all required documents must be submitted and reviewed before the loan can be processed

Apply for a Federal Direct Subsidized Stafford Loan

If you are eligible for a Federal Direct Subsidized Stafford Loan, it will be included in your financial aid award package.

First-Time Stafford Loan Borrowers

In most cases, you will only be required to complete the Master Promissory Note (MPN) and Entrance Counseling once during their college career.

Prior Stafford Loan Borrowers

Loan Application Deadlines


Reduce or Cancel a Federal Direct Subsidized Stafford Loan

Your may reduce or cancel a Subsidized Stafford Loan online via your myUMBC account if it has not yet disbursed. If the loan has already disbursed, you should complete the Loan Decrease/Cancel Request Form no later than 14 days after you receive the disbursement notification.

It is best to make the adjustments online or submit the form to our office for processing well before the funds are set to disburse to your billing account in order to avoid complications with the return of these funds.

Federal Direct Student Loan Disclosure Statements

Students receiving any type of Federal Direct Loan will receive a Disclosure Statement from the Federal Loan Origination Center for each new loan. The disclosure statement will provide comprehensive information about the type(s) of loan(s), loan amounts, the loan period, and anticipated disbursement dates. You should save every Disclosure Statement your receive for future reference, and can also access them online at any time by logging in to with your FSA ID.