 TITLE: What Are the Different Types of Federal Student Loans? CONTENT: Federal Direct Subsidized Loans\n-------------------------------\nDirect subsidized loans are loans for undergraduate students with financial need. The interest on these loans is paid for, or \"subsidized,\" by the government while you're in school at least half time; during the six months after you leave school (known as your grace period); and during any deferment periods, such as when you need to postpone payments to head back to school or money struggles get in the way of making your payments.\n*   **Who is eligible**: Undergraduate students who have financial need.\n*   **Rates and fees**: The interest rate on federal direct subsidized loans for the 2020-2021 school year is 2.75%. The loan fee, which is deducted prior to loan disbursement, is 1.057% for student loans disbursed before October 1, 2021. END