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What does subsidised and unsubsidised mean?

April 26, 2017mean subsidised

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What does subsidised and unsubsidised mean?

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The terms ‘subsidised’ and ‘unsubsidised’ refer to the payment of interest of a Stafford loan while a student is in school or during any loan deferment period. Generally, when undertaking a subsidised Stafford loan, the U.S. Federal Government pays the interest of the loan while a student is still studying. When undertaking an unsubsidised Stafford loan, the student is responsible for paying the interest of the loan even when studying.