With a direct subsidized loan, the federal government covers your interest while you're in school and during your grace period
The biggest advantage of taking out subsidized loans is that the Department of Education will pay your interest charges for you while you're in school and during your grace period.
While in-school student loan interest assistance is a huge plus for subsidized loans, not every student will qualify for them. Unlike unsubsidized loans, you must demonstrate a financial need to receive any subsidized loan distributions. And graduate and professional students are not eligible for a subsidized loan whatsoever, regardless of their financial situation.
With both subsidized and unsubsidized loans, the Department of Education charges a 1.059% loan disbursement fee. This is subtracted from your loan payout. So for a $3,500 subsidized loan, the loan fee would reduce the actual money you receive by about $37 to $3,463. One of the major disadvantages of subsidized loans is that they have strict annual and aggregate borrowing limits. Here is how much you can borrow in Direct Subsidized loans during each year of your education.
So even if your financial need qualifies you for subsidized loan funding, there's a strong chance that you'll need to take out some unsubsidized loans as well.One of the big advantages of both subsidized and unsubsidized federal student loans is that you don't have to make any payments while you're enrolled at least half-time in a qualifying education program.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inside FaZe Clan's multi-million-dollar mansion in LA: rent, details - Business InsiderThe story behind gaming giant FaZe Clan's new mansion in LA, which costs $80,000 per month and was once rented by Justin Bieber
Read more »
Petition demands Ruth's Chris return coronavirus stimulus loan - Business InsiderMore than 150,000 people have signed a petition calling for Ruth's Chris Steakhouse to return $20 million in loans meant to help small businesses
Read more »
Some Not-So-Small Companies Are Getting Small-Business Loans Under PPPThe Paycheck Protection Program was meant for small businesses, but some big, publicly traded companies have cashed in too, including sandwich chain Potbelly, video storage company Quantum and coal producer Hallador Energy, each of which got $10 million.
Read more »
Senate reaches deal on more funding for small business loans, Schumer saysCongressional leaders reached an agreement with the White House to provide more money for small business loans, hospitals and COVID-19 testing.
Read more »
52 million people worry about losing their jobs as loans are slow to get to businessesThe fears come amid a stampede to the unemployment line brought about through government-ordered shutdowns of most nonessential businesses.
Read more »
Shake Shack Returns $10 Million Loan Meant For Small BusinessesExecutives for the burger chain Shake Shack say they will return the $10 million loan they received as part of the Paycheck Protection Program, a now-empty relief fund which was intended to help small businesses pay employees during the pandemic. What do you think?
Read more »