Should i accept a subsidized loan

In many ways, unsubsidized and subsidized loans are similar, but there are two key differences — financial need and interest:. Federal student loans typically have lower fixed interest rates than other types of fixed rate loans and there is more flexibility with paying them back due to multiple repayment options, according to Frances Kweller of Kweller Prep. Repayment plans range from 10 to 25 years , and there are income-driven plans exclusive to federal student loans.

To be eligible for these loans, your parents have to fill out an application at StudentLoans. They can find more information about loan terms at StudentAid.

These FAQs will get you started. Read More. You may be leaving financial aid, loans and scholarships on the table. Learn from an expert how to get started. Watch Video. Your award letter may also include scholarships or grants, which is genuinely free money you never have to pay back.

Try to use as much free money as you can before you borrow. Partner With Us. For Educators. For Financial Institutions. Try Edmit Free Log In. Nick Ducoff. Vemo and Edmit join forces to help st Alicia Hahn. Begin Your Research on Education and Featured Stories. Filter By Categories cost-of-college financial-aid-and-scholarships student-loans salary-and-career. Financial Aid Acceptance Sequence Some forms of financial aid are better than others. Allie Grace Garnett. Allie Grace Garnett is a professional researcher and freelance writer with a background in finance and entrepreneurship.

Garnett served as the Vice President of Marketing and Strategic Partnerships for the start-up Rentricity, and additionally founded a nonprofit organization YAVA that encourages volunteerism among college students.

Share This:. Edmit's advice helps you to be better off after graduation. Merit and financial aid estimates based on your student profile Earnings estimates and financial scores for your college and major Recommendations to save thousands on college. Sign Up. Read More:. Sign up for updates.

Popular Stories. Jan 14, Is Tuition per Year or per Semester? Dec 22, Subscribe to Email Updates. Related posts. How long does it take to pay off student loans? What's the difference between subsidized and unsubsidized Federal loans? To be eligible to receive either of them, you must be enrolled at least half-time at your school.

The major differences are interest and how much you can borrow. For unsubsidized loans, interest starts accruing accumulating from the date of your first loan disbursement. For both types of loans, the amount you can borrow is determined by your school, and they use several pieces of information to calculate your aid. If you need to accept loans to help cover the cost of college or career school, remember to borrow only what you need.

You should accept the subsidized loan first because it has more benefits.