2007-04-22 10:36:26 · 3 answers · asked by eagle_eyes 2 in Education & Reference ➔ Financial Aid
Subsidized loans are based on financial need and the interest is paid by the government as long as the student is enrolled in school.
Unsubsidized loans are not based on financial need and all students qualify no matter how much you make. The government does not pay the interest while you are in school, but you can have them deferred until 6 months after you graduate.
2007-04-22 17:00:02 · answer #1 · answered by psm23 2 · 0⤊ 0⤋
On subsidized loans the interest is paid by the federal government while you are in school. On Unsubsidized you have a choice of paying it as it accrues or letting it capitalize into the loan.
2007-04-22 19:11:09 · answer #2 · answered by rurouni33569 4 · 0⤊ 0⤋
Subsidized loans are interest free until you get out of school. Unsubsidized loans gather interest, even while you are school. So subsidized loans are better than unsubsidized.
2007-04-22 17:44:31 · answer #3 · answered by Mr. Taco 7 · 0⤊ 1⤋