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A low-cost optical subassembly design for large core fiber transceiver is presented. The complete transceiver module is realized by assembling the low-cost optical subassembly directly on the transceiver functional printed circuit board. -7 dBm optical power output and 6 dB extinction ratio are achieved on transmitter by the vertical self-alignment and horizontal passive alignment at the transmitter. 190 m link distance is achieved at 2.5 Gb/s and 340 m link distance is achieved at 1.25 Gb/s for the plastic optic fiber (POF) transmitter with grade index plastic optical fiber. 145 m link distance is achieved at 2.5 Gb/s for the POF receiver.