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