Subsidised Loans Vs Unsubsidised Loans

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

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

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

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

Subsidized loans are need-based

Unsubsidized loans are available to students irrespective of their financial need