Financial Aid

What is the difference between subsidized and unsubsidized loans?

Subsidized loans:

  • Are awarded on the basis of financial need
  • Have no interest that  accrues on the loan during half-time enrollment and during  authorized periods of deferment
  • Beginning in 2012-2013, subsidized loans have an interest rate of 3.4% for undergraduates and are not available to graduate students

Unsubsidized loans:

  • Are not awarded on the basis of financial need
  • Have interest that accrues during half-time enrollment and during authorized periods of deferment
  • Do not require payment on interest but students will receive a quarterly statement showing the amount of interest during each quarter.  It is recommended that students pay all or at least part of their quarterly interest.
  • Have an interest rate of 6.8% for both undergraduate and graduate students