Difference between Subsidised Loans and Unsubsidised Loans

Subsidised Loans Vs Unsubsidised Loans

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Subsidised Loans: The federal government is responsible for paying the interest on the loans.

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That is, when the borrower is in school (grace period) & during authorised deferment periods.

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Unsubsidized loans start accruing interest as soon as they are disbursed.

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That is, even when the student is in school and during the deferment periods

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Subsidized loans are need-based

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Unsubsidized loans are available to students irrespective of their financial need

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Click here to learn more about Unsubsidized loans

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