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What is the difference between a Federal Direct Subsidized Loan and a Federal Direct Unsubsidized Loan?

11 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.