What is the difference between unsubsidised and subsidised loans?

Question

i really need to know asap

Answer 1

An unsubsidized loan will collect interest while you are in school.  The subsidized loan will not begin to collect interest until after graduation.

Answer 2

Subsidised loans are better. You do not pay any interest on the loan until after you graduate AND you do not accumulate interest while you are in school. The government "subsidises" the loan by paying the interest for you, until you graduate.

Unsubsidised loans are loans that you do not pay interest until you graduate, but the loan accumulates interest during that time

Answer 3

Judimom:

As I'm sure you know, you have no obligation to begin repaying a Stafford loan until you have either dropped out of school, or completed your degree program. In fact, you have 6-9 months after you earn your degree to begin paying the loan back, and even that can be extended if you decide to continue on to graduate school.

Even though you're not paying the loan while you're in college, interest is still accruing - every single month, interest is added to the balance.

With a subsidized loan, the federal government gives you a gift - they pay all of the interest that accrues while you're still in school. In other words, they send a payment to the lender every month - and when you leave school and begin paying back the loan - you begin with the original loan balance, rather than with the loan balance plus all of the accrued interest.

Because a subsidized loan is another form of government "gift", you can only qualify for so much in subsidized loans each year, and for only so much in subsidized loans over your entire educational career. Any other money that you borrow from the government must take the form of unsubsidized loans.

I hope that helps!