Loan FAQ's

What is the difference between a subsidized and unsubsidized loan?

• Subsidized loans are awarded based on need.
  The U.S. Department of Education pays the interest while the student is in school at least half time.
• Unsubsidized loans charge interest from the beginning of the loan until full repayment.
  Students can either pay the interest as they go or allow the unpaid interest to compound upon the principal.

What is a "Private loan"?
These are loans through private agencies that are willing to lend to students for education purposes. These loans are unsubsidized and allow the student to defer the payments until after they graduate or drop below halftime status. See some of these options on the Loan Comparison Chart.