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Whats the difference between subsidized and unsubsidized loans?

April 26, 2017Loans Subsidized Unsubsidized

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Whats the difference between subsidized and unsubsidized loans?

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SUBSIDIZED loans are for students who show a financial need. Students who have a subsidized loan do not pay the interest on their loans while attending college. UNSUBSIDIZED loans are for students who do NOT show a financial need. Students with Unsubsidized Loans are responsible for paying interest while attending college. Interest is either paid quarterly or can be deferred and rolled into the principle making overall cost of the loan substantially higher.