Difference Between Subsidized and Unsubsidized 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 2017-2018, subsidized loans have an interest rate of 4.45% (restricted to undergraduates and are not available to graduate students)
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.
Have an interest rate of 4.45% for undergraduates (same as subsidized loan) and 6.0% for graduate students.