What’s the difference between Subsidized and Unsubsidized?
A Subsidized Stafford Loan is a need-based loan; the government pays the interest on these loans when you’re in school so that you’re not incurring interest. An Unsubsidized Stafford loan is not need-based; if you choose not to pay interest until after you graduate, your interest builds up while you’re in school.
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 difference between a subsidized loan and unsubsidized loan?
- Do subsidized housing units depreciate faster than unsubsidized ones?
