What is the difference between a subsidized loan and unsubsidized loan?
Subsidized loan are for students with demonstrated financial need as determined by federal regulations. No interest is charged while you are in school at least half-time, during your grace period and during deferment periods. The interest is paid by the federal government while the student is attending school. Unsubsidized loans are not need based, and the student is responsible for the interest while attending school. Students have the option to defer making the interest payments if they are enrolled at least part time.
