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What is the difference between Subsidized and Unsubsidized Student Loans?

252 views   |   0 Vote this question as useful.   0 Vote this question as not useful.   |   Last updated on Apr 09, 2021    FAFSA Financial Aid

 

The Federal Student Loans available to undergraduate students are the Direct Subsidized and Direct Unsbusidized loans. There are two key differences between them.

  1. Subsidized loans require financial need, Unsubsidized loans do not.
  2. With Subsidized loans, while you're in school, for the first 6 months after you finish school, and during periods of deferrment the government will pay your interest. Whereas with Unsubsidized loans you have to pay interest during all periods. 

To learn more about Federal Student Loans check out the Studentaid.gov website.