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Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.
Both Direct Subsidized Loans and Direct Unsubsidized Loans are low-interest federal student loans that can help you pay for the costs of college or career school. But before you accept either one, it’s important that you understand how they’re different so you can make the best choices for your situation.
Unsubsidized Loan. An unsubsidized loan borrowed through the Direct Loan Program offers undergraduate, graduate, and professional students a low, fixed interest rate and flexible repayment terms. You don’t need to show financial need to qualify.
The Federal FFELP and Direct (Subsidized and Unsubsidized) Loan has interest rates well below average and special repayment schedules. The money you borrow must be used for school costs including tuition, fees, books, supplies, and room and board.
Here are the main differences between subsidized and unsubsidized student loans: Who can borrow loans. Subsidized: Undergraduate students enrolled at least half time. Unsubsidized:...
An unsubsidized loan — formally known as a direct unsubsidized loan — is a form of federal student loan available to both undergraduate and graduate students who meet the requirements for federal student aid. Unlike with subsidized loans, eligibility for unsubsidized loans isn’t determined by financial need.
Unsubsidized loans generally allow higher loan limits than subsidized loans, letting students borrow more money. Like subsidized loans, unsubsidized loans have an annual loan limit per academic year and an aggregate loan limit, which is the total amount a student can borrow for their education.
Unsubsidized loans accrue interest as soon as they are disbursed, even if you are currently enrolled in college. Subsidized loans should be your first option, but if you don’t qualify,...
If you need student loans to pay for school, the first loans you should consider are federal direct subsidized and unsubsidized loans. Here's how they compare.
Key Takeaways. Federal student loans can be subsidized or unsubsidized. A student's eligibility for subsidized loans is based on financial need. Although both types of loans have to be paid...