What are the differences between subsidized and unsubsidized student loans?

Student loans are a common way for students to finance their college education. In Oregon, subsidized and unsubsidized loans are two different kinds of student loans available to students who are attending college. Subsidized loans are loans that are funded by the government. These loans do not accrue interest while the student is enrolled in school. Subsidized loans are offered based on financial need. In Oregon, the maximum amount that can be borrowed from a subsidized loan is dependent on individual school policies. Unsubsidized loans are loans that are not funded by the government. This means that the student is responsible for accruing interest on the loan while they are still in school. Unsubsidized loans are not based on financial need and are offered to any student who is accepted into college. In Oregon, the maximum amount a student can borrow from an unsubsidized loan is up to the cost of attendance minus other financial aid received. Although subsidized and unsubsidized loans are similar in many ways, they have several important differences. Subsidized loans are offered to students based on their financial need and do not accrue interest while in school. Unsubsidized loans are not need-based and do accrue interest while the student is still in school. The amount that can be borrowed from each loan type is also dependent on individual school policies and other financial aid received.

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What are the differences between subsidized and unsubsidized student loans?

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