What's the difference between unsubsidized and subsidized loans?

Federal Stafford Loan

  • Fixed interest rate of 6.8%
  • Zero fees (you save 2%)
  • No credit check is required
Apply for the Stafford loan

Federal PLUS Loan

For parents or guardians of undergraduate students. A low interest rate of 8.25% and a viable alternative if you have been declined for, or choose not to take a private student loan.

Learn more about the Parent PLUS Loan
  • Subsidized loans are awarded based on financial need. You will not be charged interest before you begin repayment or during periods of deferment. The federal government "subsidizes" (or pays) the interest during these times.
  • Unsubsidized loans are not awarded based on financial needs. Any eligible student can take out Unsubsidized Stafford Loans. You will be charged interest from the time the loan is disbursed, to the time the loan is repaid in full.

Do you have a question that hasn't been answered? Contact us and we'll be glad to help you.

Stafford Loan Frequently Asked Questions