Subsidized and unsubsidized loans

Subsidized and unsubsidized loans

Subsidized loans

Subsidized loan interest is paid by the government while you are attending college at least half time (6+ credit hours) and during the following six month grace period. This loan has a fixed interest rate that is set when the first disbursement is made (see interest rates below). You become responsible for the interest once the loan enters repayment (at the end of the grace period).

Note: Due to the "Moving Ahead for Progress in the 21st Century Act," new students borrowing on or after July 1, 2013 cannot receive loans past the 150 percent completion rate for their education program. For example, if your program is 60 credits you will only be eligible for subsidized loans up to 90 credits. Once the 150 percent mark is reached, you will only be eligible to receive unsubsidized loans.

Unsubsidized loans

Unsubsidized loan interest begins to accrue at disbursement and continues until the loan is paid in full. You may choose whether to make interest payments during in-school, grace and deferment periods. Choosing to delay making interest payments during this time will cost you more in the long run. This is why you are strongly encouraged to make interest payments as it accrues. Unpaid interest is capitalized, which means that it is added to your loan. Interest is then calculated on this new amount.

To see the current interest rate for unsubsidized loans, please visit this website.