What is the difference between Subsidized and Unsubsidized loan?
Both types of loans are backed by the federal government. The federal government will pay the interest that accrues on the Subsidized Loan while the student is in school and in their 6 month grace period after school. Unsubsidized Loans accrue interest from the time the loan is disbursed. The student has the option of paying the interest quarterly or having the interest accrue and become part of the principle balance owed.
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 main difference between a Subsidized and Unsubsidized Direct Loan?
- What is the difference between a subsidized loan and unsubsidized loan?
