Subsidized/Unsubsidized student loans

Subsidized vs  Unsubsdized Student Loans

Hello Rookies!

What is the difference between subsidized and unsubsidized student loans?

To make it simple always go with the subsidized when offered 

                     Subsidized                                                                         Unsubsidized

                 -  Deferred interest                                                           - Interest accumulates immediately


Subsidized student loans do not begin to add interest until the grace period is up.  The grace period typically last for the duration of schooling and some months after that typically up to 6 months after graduation.  Compare this to unsubsidized student loans which begin to accumulate interest from day one of the loan.  If you have several years of schooling to do your loan is building interest debt all the while during your studies.

You may not be able to finance your entire tuition with subsidized loans alone.  Try using a combination of both subsidized and unsubsidized if this is the case.

When ever offered, subsidized loans almost always offer advantage over unsubsidized



   




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