Difference Between Subsidized and Unsubsidized Loans
Subsidized loans:
- Are awarded on the basis of financial need
- Have no interest that accrues on the loan during half-time enrollment and during authorized periods of deferment
- Beginning in 2022-2023, subsidized loans have an interest rate of 4.99% (restricted to undergraduates and are not available to graduate students)
- Subsidized Loans are no longer available to graduate and professional students
Unsubsidized loans:
- Are not awarded on the basis of financial need
- Have interest that accrues during half-time enrollment and during authorized periods of deferment
- Do not require payment on interest but students will receive a quarterly statement showing the amount of interest during each quarter. It is recommended that students pay all or at least part of their quarterly interest
- Beginning in 2022-2023, unsubsidized loans have an interest rate of 4.99% for Undergraduate Students, and a 6.54% interest rate for Graduate Students