What’s The Difference Between Subsidized And Unsubsidized Education Loan

A subsidized education loan is a type of financial aid where the government pays the interest while the student is in school, during the grace period, and in deferment. This helps reduce the overall loan cost. In contrast, with an unsubsidized loan, the student is responsible for all interest from the moment the loan is disbursed, even while still in school. Both types of loans are available for higher education, but subsidized loans are need-based, while unsubsidized loans are available to all students, regardless of financial need. Understanding these differences helps students choose the right loan option.Readmore