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What do Subsidized and Unsubsidized mean?

April 26, 2017mean Subsidized Unsubsidized

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What do Subsidized and Unsubsidized mean?

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Subsidized means the U.S. Department of Education will pay the interest that accrues during certain periods. This type of loan is available to students who demonstrate need based on the cost of attendance. Unsubsidized means the U.S. Department of Education will not pay the interest on this type of loan. If you have questions about other financial aid terms or phrases, visit our Financial Aid Glossary.