Saturday, September 19, 2009

Student Loans - Subsidized vs. Unsubsidized Loans

A “subsidized” student loan:

The federal government pays the interest on
your loan while you are in school.
Once you graduate or leave school, you’re
responsible for the interest during
repayment.

An “unsubsidized” loan:

You’re responsible for paying the interest
which begins accruing (accumulating) when you
receive the loan. You can add the
interest to the principal while you’re in school.

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