What is the difference between Federal Direct Loan subsidized and unsubsidized loans ?
The Federal Direct Subsidized Loan is based on need, and the government pays the interest while the student is still enrolled at least at a half time basis and during the grace period. The Federal Direct Unsubsidized Loan is not need based, so it is available to students regardless of financial need. While the student is still in school the interest accrues and is capitalized, or added to the principal if the recipient chooses not to make payments upon the interest. However, students may request to make interest payments while still in school. Most students will begin repayment six months after leaving Santa Clara University or dropping below half time status.
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 aggregate Federal Direct Subsidized/Unsubsidized Loan limit for graduate students?
- What is the difference between Federal Direct Loan subsidized and unsubsidized loans ?
