If you’ve just received your financial aid offer from your college, you might see two different categories of student loan: subsidized and unsubsidized. Great. As if student loans weren’t complicated enough, now you’re finding out there are two different kinds?!
What does it mean to “subsidize” a loan? Who is doing the subsidizing? And, most importantly, how much is this going to cost you?
Don’t panic. We’re here to help you make sense of the difference between subsidized and unsubsidized student loan.