Subsidized Loans
- Direct Subsidized Loans are only available to undergraduate students. Perkins Loans are available to undergraduate and graduate students.
- Eligibility is based on demonstrated financial need.
- The federal government pays the interest while you are in school at least half time, during the grace period, and during periods of authorized deferment.
Examples:
- Direct Subsidized Loan
- Subsidized Stafford Loan (for loans obtained prior to 7/1/10)
- Perkins Loan
Unsubsidized Loans
- Available to undergraduate and graduate students, as well as parents of undergraduate students.
- Eligibility is not based on financial need.
- The borrower is responsible for paying all interest.
Examples:
- Direct Unsubsidized Loan
- Parent PLUS Loan
- Grad PLUS Loan
- Unsubsidized Stafford Loan (for loans obtained prior to 7/1/10)