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What Are Subsidized Loans?

April 26, 2017Loans Subsidized

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What Are Subsidized Loans?

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A subsidized loan is a student loan on which you do not pay interest while you are enrolled in school. The interest on a subsidized loan is paid by the federal government for the duration of your education. Although subsidized loans may sound like an ideal way to pay for college, the interest on these loans is not waived forever. You will be responsible for paying interest on your loans as soon as the repayment period begins.