What are the differences between subsidized and unsubsidized student loans?

Subsidized and unsubsidized student loans are two types of financial aid available to college students in California. The main difference between the two is that subsidized loans are based on financial need, while unsubsidized loans are not. With a subsidized loan, the government pays for the interest that accumulates on the loan while the student is still in school. This can save students a lot of money in the long run. However, only those students who demonstrate financial need can qualify for subsidized loans. In contrast, an unsubsidized loan is available to any student, regardless of their financial need. The student is responsible for the interest that accrues on the loan while they are still in school. Unsubsidized loans may have less stringent eligibility requirements and may have lower interest rates, but they are more expensive in the long run because of the interest. Both subsidized and unsubsidized loans are great options for college students in California who need help paying for their education. Subsidized loans are geared towards those with financial need and can save them money in the long run, while unsubsidized loans are available to all students and are more affordable initially.

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What are the differences between subsidized and unsubsidized student loans?

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