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What is the difference between Direct Subsidized Loan and a Direct Unsubsidized Loans?

Direct Subsidized Loans have slightly better terms for students. Below are some benefits of a Direct Subsidized Loans:

1. The educational institution decides on the amount that the student can borrow, with the amount that does not exceed your financial need

2. Directly Subsidized Loans are available to undergraduate students that have a financial need.

3. The US DOE pays the interest on a subsidized loan

A) A six month grace period for the first half year after you leave school

B) While you are in school (at least part-time)

C) Under a period of deferment, which is a period of postponement of loan payments
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