What is the difference between a subsidized and an unsubsidized Federal Direct Student Loan?
The Federal Direct Subsidized Student Loan is awarded on the basis of financial need. The federal government pays the interest on the loan during the time you are enrolled in college at least half time and during the period in which your loan is deferred. The Federal Direct Subsidized Student Loan has a fixed interest rate of 6.0% through June 30, 2009 and a fixed interest rate of 5.6% for loans disbursed on or after July 1, 2009. The Federal Direct Unsubsidized Student Loan is not awarded on the basis of financial need, and you are charged interest from the time the loan is disbursed until it is paid in full. The Federal Direct Unsubsidized Student Loan has a fixed interest rate of 6.
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 and an unsubsidized Federal Direct Student Loan?
- What is the difference between a subsidized and unsubsidized Federal Direct Student Loan?
