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What are subsidized loans/ unsubsidized loans and what is the difference?

April 26, 2017difference Loans Subsidized Unsubsidized

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What are subsidized loans/ unsubsidized loans and what is the difference?

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Subsidized and unsubsidized loans are federal loans (money that must be repaid) offered to you or your parents from the government. A subsidized loan is a loan that does not accumulate interest while you are in school. An unsubsidized loan accumulates interest on the money that you borrow, while you are in school, but you dont have to start repaying until you graduate or leave school. Always carefully evaluate how much money you should take out and never borrow more than you need. For more information on funding your education or the FAFSA, please click here.