Is unsubsidized or subsidized student loans better?
Subsidized loans have lower interest rates than unsubsidized loans. Unsubsidized loans can be used for graduate school. Borrowers do not have to demonstrate financial need to take out an unsubsidized loan.
How do I qualify for a subsidized student loan?
To be eligible for a subsidized loan, you must:
- Be an undergraduate student.
- Be able to prove financial need.
- Be enrolled at a school at least half-time.
- Be enrolled in a program that can lead to a degree or certificate awarded by the school.
What is the difference between subsidized and unsubsidized student loans?
Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students. You are not required to show financial need to receive a Direct Unsubsidized Loan.
What government loans are available for college students?
There are three types of Federal student loans to consider. The Stafford Loan, the Direct PLUS Loan for Parents and the Perkins Loan. Graduating students can also take advantage of a Federal Consolidation Loan to combine all of their college loans into one manageable loan package.
Can I subsidized and unsubsidized loans both?
You’ll have to repay the money with interest. Subsidized loans don’t generally start accruing (accumulating) interest until you leave school (or drop below half-time enrollment), so accept a subsidized loan before an unsubsidized loan. Next, accept an unsubsidized loan before a PLUS loan.
Who is eligible for subsidized direct loans?
To be eligible for a Direct Subsidized Loan, you must be an undergraduate student with financial need, who has not exceeded the subsidized loan limit for which you can receive Direct Subsidized Loans. Learn more about eligibility.
What types of loans are there for students heading off to college?
Federal student loans
- Direct Subsidized Loans. Direct Subsidized Loans are for undergraduate students with financial need.
- Direct Unsubsidized Loans.
- PLUS Loans.
- Undergraduate student loans.
- International student loans.
- Graduate student loans.
- MBA student loans.
- Medical student loans.
Should I accept my unsubsidized loan?
If you need to accept loans to help cover the cost of college or career school, remember to borrow only what you need. You should accept the subsidized loan first because it has more benefits. If you have to accept an unsubsidized loan, remember that you’re responsible for all the interest that accrues on that loan.