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What is the difference between a Subsidized and Unsubsidized student loan?

Subsidized loans do not accrue interest while you are in school while unsubsidized loans begin accruing interest from the time the loan is fully disbursed (i.e., if you have a fall/spring loan, the loan is fully disbursed once the spring amount is paid to your student account). Both types of student loans do not begin repayment until six months after graduation, you stop going to school or your enrollment drops below half-time status (i.e., 6 credit hours for undergraduate students and 5 credit hours for graduate students). Undergraduate students also are eligible for an interest rate reduction on subsidized loans.