What is the difference between unsubsidized and subsidized student loans?

[Edit]

Answer

Subsidized means it is need-based and therefore the govenment pays the interest while you are in school, during a six-month grace period after graduation or otherwise separating from school, and during authorized deferment. Unsubsidized is not need-based and therefore the government charges you interest starting from your first receipt of money.

Improve Answer Discuss the question "What is the difference between unsubsidized and subsidized student loans?" Watch Question

First answer by Gewanda. Last edit by SallieMae. Contributor trust: 0 [recommend contributor]. Question popularity: 214 [recommend question]

Also see on Answers.com

Research your answer:

Answers.com > Wiki Answers > Categories > Business and Finance > Personal Finance > Money Management > Loans > Student Loans and Financial Aid > What is the difference between unsubsidized and subsidized student loans?

Our contributors said this page should be displayed for the questions below. (Where do these come from)
If any of these are not a genuine rephrasing of the question, please help out and edit these alternates.
Un subsidized loan?  What is unsubsidized?  Student loans subsidized?  What are subsidized loans?  What is a subsidized loan?  Unsubsidized student loans?  What is a unsubsidized loan?  What does unsubsidized mean?  What is an unsubsidized loan?  What is unsubsidized interest?  Unsubsidized and subsidized loans?  Subsidized and unsubsidized loans?  Do subsidized loans affect credit?  Federal Direct Unsubsidized Loans?  Difference between subsidized loan?  What are unsubsidized student loans?  What is a unsubsidized student loan?  Are subsidized loans always intrest free?  Do you have to pay back subsidized loans?  What is Unsubsidize and subsidized loans?