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What is the difference between an Unsubsidized and Subsidized Student Loan?

April 26, 2017student loan Subsidized Unsubsidized

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What is the difference between an Unsubsidized and Subsidized Student Loan?

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Subsidized Loans are awarded based on financial need. The federal government will pay the interest while you are in school up untill repayment begins after the six-month grace period. Unsubsidized Loans are not awarded on financial need. You will be responsible for making the interest payments when the loan is disbursed. You may qualify for this loan even if your family’s income exceeds the guidelines.