Difference between direct subsidized loan and direct unsubsidized loan
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Most students need to use federal student loans or private student loans to fund their college educations. When you take out federal student loans to pay for school, the loans are either Direct Subsidized Loans or Direct Unsubsidized Loans. Direct Subsidized Loans are federal student loans available to undergrads that do not accrue interest while the student is in school or when loans are deferred after graduation.
The government sets the interest rate on Direct Subsidized Loans, there is no minimum credit score required to qualify, and rates are fixed. However, the amount students can borrow is limited. Students must complete the Free Application for Student Aid (FAFSA) to become eligible for Direct Subsidized Loans, and eligibility is based on demonstrated financial need