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What are the differences between the FFEL loans (Subsidized, Unsubsidized, and PLUS)?

April 26, 2017differences FFEL Loans Plus Subsidized Unsubsidized

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What are the differences between the FFEL loans (Subsidized, Unsubsidized, and PLUS)?

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The Subsidized loan is awarded on the basis of the students financial need (COA (Cost of attendance)-EFC (Expected Family Contribution) = Financial Need), and the federal government subsidizes the interest while the student is enrolled (at least half-time status). The Unsubsidized loan is not awarded on the basis of the students financial need, and interest is charged from time of disbursement. The student has the option of paying the interest while in school or letting it accrue and added to the principal amount. PLUS loans are available for dependent (under 24 years old) undergraduate students with “unmet need”. A PLUS loan is a loan where the parents of a dependent undergraduate student can borrow funds to go towards the student’s educational expenses. Parents must pass a credit check and meet citizenship requirements.