Subsidized Loans

Subsidized loans are a type of student loan where the government pays the interest while you are in school at least half-time, during the grace period after graduation, and during deferment periods. This means the loan doesn’t accrue interest during these times, making it less expensive overall. These loans are need-based, meaning your financial situation is a factor. They typically have lower interest rates than unsubsidized loans, making them an affordable option for students who qualify. The main advantage is that they reduce the total amount you owe over time because interest isn't accumulating during specific periods.