What is subsidized and unsubsidized?
When a Federal Stafford Loan is subsidized, it means that the federal government will pay the interest that is accruing on the loan while you are enrolled at least half-time in college and during your six-month grace period. If the loan is unsubsidized, then this interest is accumulating during this same time frame and you may elect to pay the interest or defer paying it until your loan enters repayment. You must document financial need in order to qualify for the subsidized federal student loan.
When a Federal Direct Loan is subsidized, it means that the federal government will pay the interest that is accruing on the loan while you are enrolled at least half-time in college and during your six-month grace period. If the loan is unsubsidized, then this interest is accumulating during this same time frame and you may elect to pay the interest or defer paying it until your loan enters repayment. You must document financial need in order to qualify for the subsidized federal student loan.
Related Questions
- What if I have exhausted my annual Federal Direct Subsidized/Unsubsidized Loan eligibility and I still have not reached the cost of attendance? How do I secure additional loans?
- What is the difference between a subsidized loan and unsubsidized loan?
- Do subsidized housing units depreciate faster than unsubsidized ones?
