What is a subsidized loan?

SUBSIDIZED

Federal Subsidized Direct Stafford Loans are available to qualified students with subsidized interest, meaning the federal government pays the interest on the loan while a student is in college. So, no payments need to be paid until the student stops attending at least half-time. The government does not pay any other portion of the loan during or after college, and the loan begins collecting interest following a six- or nine- month "grace period" after the student stops attending at least half-time (6 credits per semester).