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What is the difference between a Federal Direct Subsidized Loan and a Federal Direct Unsubsidized Loan?
130 views | 0 Vote this question as useful. 0 Vote this question as not useful. | Last updated on Feb 19, 2024 Financial Aid
A subsidized loan does not start accruing interest until a student graduates, drops below 6 credit hours during the semester, or withdraws from the institution.
An unsubsidized loan starts accruing interest immediately while in school. Once the 6 month grace period ends, full repayment will begin on the principal and accrued interest.
Check out the Student Aid (www.studentaid.gov) website for more information.
