Direct Subsidized Loan Meaning. For subsidized loans, you won't be charged interest while you're enrolled in school and during your grace period (about six months)., To subsidize means, simply, to help someone pay the cost of something., Direct subsidized loans are available to students who demonstrate financial need.
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Generally, a subsidized loan is the equivalent of an unsubsidized loan with an interest rate that is. You must have financial need as determined by the Student Financial Aid Office and have not exceeded your annual or lifetime aggregate loan limits. For subsidized loans, you won't be charged interest while you're enrolled in school and during your grace period (about six months). Direct subsidized loans are available to students who demonstrate financial need. The amount you can borrow is determined by your school.
However, if you meet the financial need requirements to qualify for subsidized loans, you'll pay less over time than you would with unsubsidized loans. » MORE: Types of student loans: Which is best.
The amount you can borrow is determined by your school. Subsidized Loans do not accrue interest while you are in school at least.
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Do you have more questions on Direct Subsidized Loans and Direct Unsubsidized Loans?,Department of Education pays the interest on the However, taking more time to pay off a loan means that a student will make more payments and pay more interest.,This is called capitalization—when this happens, you start paying interest on more than your original loan amount, which means more interest.