What’s the difference between Direct Subsidized Loans and Direct Unsubsidized Loans?

1. What’sthedifferencebetweenDirectSubsidized Loans andDirectUnsubsidized Loans? • Bruce Mesnekofftalk about Direct SubsidizedLoans aswell as DirectUnsubsidized Loans. • In short, Direct SubsidizedLoans haveslightlybetter terms to help out students withfinancial need. • Here’s aquick overviewof Direct SubsidizedLoans: • Direct SubsidizedLoansareavailable to undergraduate students with financial need. • Yourschool determines the amountyoucan borrow, and the amount maynot exceedyourfinancial need. • TheU.S. Department ofEducation pays the interest on aDirect SubsidizedLoan • whileyou’reinschoolatleasthalf-time, • forthefirstsixmonthsafteryouleaveschool(referredtoasagraceperiod),and • duringaperiodofdeferment(apostponementofloanpayments). • *Note:Ifyou receivedaDirect SubsidizedLoan that was first disbursed between July1, 2012,and July1, 2014,you will be responsible for paying anyinterest that accrues duringyour grace period.Ifyouchoosenotto paythe interest that accrues duringyour graceperiod, the interest will be added toyourprincipalbalance. • Here’s aquick overviewof Direct UnsubsidizedLoans: • Direct UnsubsidizedLoans areavailable to undergraduateand graduate students; thereis no requirement to demonstrate financial need. • Yourschool determines the amountyoucan borrow based onyourcost of attendanceand otherfinancial aidyou receive. • You are responsible for paying theinterest on aDirect UnsubsidizedLoanduring all periods. • Ifyou choosenot to paytheinterest whileyou are in school and during graceperiods and deferment or forbearanceperiods,your interest will accrue (accumulate) and becapitalized (that is,your interest will be added to theprincipal amount ofyour loan). ContactBrucemesnekofffor anyfurther assistance StudentLoanHelpCenterGeneralManagerBruceMesnekoffjoinsus toDiscusstheStudentLoanSituationinAmerica