Direct Subsidized Loans Direct loans that are subsidized open to undergraduate pupils with economic do not need to included in grants and scholarships. The federal government pays your loan interest while you are in school on subsidized loans. Pupils may make an application for direct loans just when they have already been evaluated for grant eligibility. For 2019-2020 scholastic year, the interest price is fixed at 4.53 per cent (capped at 8.25 per.. Read More