What is the difference between the subsidized and unsubsidized loans?
In order to receive a subsidized loan the student must have calculated need. With a subsidized loan there are no payments of either principal or interest until six months after the student ceases to attend on at least a half time basis. Unsubsidized loans are not need based. A student may receive an unsubsidized loan even if there is no calculated need. There are no payments on the principal balance until six months after the student ceases to attend on at least a half time basis, but the student is responsible for the interest from the date that the funds are disbursed. The interest can be paid monthly or quarterly. If it is not paid, it will be capitalized and added to the principal balance. We strongly encourage paying the interest on a regular basis in order to reduce the overall cost of the loan.
