B Y: A L E S S A A M A N T E , S E B A S T I A N O R I Z , A N D A L F R E D O S O S A

SUBSIDIZED AND UNSUBSIDIZED LOANS

E.Q. What’s the difference between subsidized and unsubsidized loans? Is one more beneficial than the other?

WHAT IS A SUBSIDIZED LOAN? WHAT DOES IT DO?

• It is a federal student loan that helps cover the cost of education for eligible students • government pays any interest there may be • Students with financial need may qualify for loan • Some common loans are; Stafford loan, Perkins

loan, plus loans, and grants

WHO GIVES SUBSIDIZED LOANS? HOW CAN I GET A SUBSIDIZED LOAN?

• The school that a student applies to determines whether or not a student is eligible for a loan • after the student finishes filling out FAFSA the

school that the student applied to will determine the students financial need • The school will then offer several different forms of

aid. Whether it be through subsidized loans, unsubsidized loans, or grants.

WHAT’S AN UNSUBSIDIZED LOAN? WHAT DOES IT DO?

• The unsubsidized Stafford loan is an award given to undergraduate/graduate students• You do not have to show any financial need to be

awarded this• The school you apply to determines the amount

you get based on your cost of attendance and other financial awards you receive • student pays any interest

WHO GIVES UNSUBSIDIZED LOANS? HOW CAN I GET IT?

• Schools you apply to provide loans

• If you choose not to pay interests while in school, interest will accumulate and be added to initial amount

• You must be at least half-time student at a school that participates in the Direct Loan Program to get this

• After you file your FAFSA the school decides if you can get this loan

WHAT IS THE DIFFERENCE BETWEEN THESE TWO LOANS? WHICH ONE BENEFITS STUDENTS MORE? WHY?

• The main difference between the two loans is that the unsubsidized loan requires the student to pay for any interest there may be

• where as the government pays for any interest in the subsidized loan.

• Subsidized loan would be the better option for students, mainly because it’s the cheaper option. However they both do benefit in aiding any financial need

https://mochagirlspitstop.files.wordpress.com/2012/09/deferment.jpg

QUICKWRITE

• What is the main difference between the two loans? • Are there any common subsidized or

unsubsidized loans?

SOURCES:

• https://studentaid.ed.gov/types/loans/subsidized-unsubsidized#how-apply • https://www.edvisors.com/ask/faq/subsidized-vs-u

nsubsidized/