Subsidized Loans

  • Loans available to students who demonstrate financial need
  • Available to undergraduate students
  • The government pays the interest on this loan while the student is enrolled (at least half-time) in school. It also includes a grace period (about 6 months) where they continue to cover the interest after graduation.

Unsubsidized Loans

  • No requirement of demonstrating financial need.
  • Available to undergrads, graduate, and professional students
  • Interest accumulates once the loan is disbursed (the date of disbursement).
  • After the grace period there will be a different rate of interest that will have to be dealt with