Subsidized and unsubsidized loans are federal 51³Ô¹Ï loans for eligible 51³Ô¹Ïs to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible 51³Ô¹Ïs at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans.
Federal Direct Subsidized Loans
The Federal Direct Subsidized Loan is a need-based loan awarded on information given on the FAFSA. The federal government pays the interest during certain times (for example, while the 51³Ô¹Ï is enrolled in school).
Subsidized Loan Details |
|
|
: |
6.53% fixed |
| : |
1.057% (for loans disbursed prior to October 1, 2024) |
| : | 6 months |
| Required | |
| Required | |
Federal Direct Unsubsidized Loan
The Federal Direct Unsubsidized Loan is not contingent upon financial need; thus, the borrower is responsible for interest that accrues on the loan while in school.
Unsubsidized Loan Details |
|
| : (Effective July 1, 2024) |
6.53% fixed (undergraduate) 8.08% fixed (graduate) |
| : |
1.057% (for loans disbursed prior to October 1, 2024) |
| : | 6 months |
| Required | |
| Required | |