Understanding Subsidized And Unsubsidized Student Loans

With more and more college students now facing higher student debt when they graduate, it is becoming important for upcoming college students to better understand student loans. During their college years, students may either avail of subsidized or unsubsidized student loans. Sometimes, they can even avail of both. It is important for such students to know the different between the two types of student loans if they even wish to have better control over their accumulating college debt.

What are subsidized student loans?

Subsidized student loans are student loans that do not require the student to pay interest while still enrolled in college. It is usually the federal government that pays for the interest. It is sort of a grace period offered to college students to keep their debts manageable over time. This grace period ends when the student graduates, in which time he or she starts to pay for the loan and the interest.




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