To qualify for a subsidized Stafford loan, undergraduate students must file the Free Application for Federal Student Aid, available at fafsa.ed.gov. And they need to enroll at least half time in a college.
Students also need to demonstrate financial need, which is determined by the Department of Education and the colleges they’re applying to. There is no official income threshold for qualification. (Students who are in default or delinquent on any existing federal loan don’t qualify.
With subsidized Stafford loans, the federal government makes the interest payments while the student is in college. With unsubsidized Stafford loans, interest accrues while the student is in school and gets tacked on to the loan balance after graduation.
There’s a limit to the dollar amount that a dependent student can receive in subsidized Stafford loans each year. For freshmen, the maximum is $3,500.
Sophomores can received no more than $4,500 in subsidized loans. Juniors and seniors can receive a maximum of $5,500 in subsidized loans.
source here.
