Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What are Subsidized and Unsubsidized Loans?

April 26, 2017Loans Subsidized Unsubsidized

0

Posted

What are Subsidized and Unsubsidized Loans?

1 Answer

0

Posted

• Subsidized loans are based on need (that is determined by FAFSA). Repayment begins six months after you graduate or drop below half-time status. This interest rate is fixed at 4.80% for the 2010-2011 school year. Loan maximums are set under federal law and vary depending on your year in school • Unsubsidized loans are not based on financial need. Repayment begins six months after you graduate or drop below half-time status. This interest rate is fixed at 6.80%. Independent undergraduate students and undergraduate students whose parents do not qualify for the PLUS program may also apply for Unsubsidized Stafford loans. Loan Maximums are set under federal law and vary depending on your year in school.