The Direct Subsidized Loan is no longer available to graduate students. As of July 1, 2012, students attending graduate school or professional school are eligible only for the Direct Unsubsidized Loan.
Undergraduate students remain eligible for new Direct Subsidized Loans.
There is, however, one type of subsidized federal student loan that is available to graduate students, the Perkins Loan. Perkins Loans are awarded by the college from a revolving loan fund. There have been no new federal capital contributions to the revolving loan fund since fiscal year 2009, so the amount of money may be limited. Also, each college sets its own policies for awarding Perkins Loans, with some colleges prioritizing the funding for undergraduate students with the greatest financial need first.
In 2012-2013, almost 2 percent of graduate students received Perkins Loans, about 18 percent of total Perkins Loan funding. The average Perkins Loan borrowed by a graduate or professional school student was $3,277.
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