What is a subsidized loan?

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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).

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Article ID: 3423
Created
Thu 2/17/22 12:11 PM
Modified
Thu 2/17/22 12:11 PM