What’s the difference between a subsidized and unsubsidized student loan?
• Subsidized student loans do not accrue interest to you until after you get out of school and need to start paying the money back. So if you borrow $10,000 over the course of 4 years, when you graduate you will owe just $10,000. Unsubsidized loans begin to accrue interest the moment you take the loan out, at the agreed upon rate, so if you take out $10,000 over 4 years at 6.5% interest, by the time you graduate and need to start paying your loan back you will owe more than $12,500.
