{"id":310,"date":"2025-07-21T07:37:47","date_gmt":"2025-07-21T07:37:47","guid":{"rendered":"https:\/\/wernikovlaptu.com\/?p=310"},"modified":"2025-07-21T13:05:55","modified_gmt":"2025-07-21T13:05:55","slug":"forbes-guide-to-subsidized-and-unsubsidized-federal-student-loans","status":"publish","type":"post","link":"https:\/\/wernikovlaptu.com\/index.php\/2025\/07\/21\/forbes-guide-to-subsidized-and-unsubsidized-federal-student-loans\/","title":{"rendered":"Forbes Guide To Subsidized And Unsubsidized Federal Student Loans"},"content":{"rendered":"<p>If you need student loans to pay for school, the first loan types you should consider are federal direct subsidized and unsubsidized loans. They\u2019re typically the lowest-cost <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;student loan&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>student loan<\/a><\/span> option, and subsidized loans in particular have the most generous <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;repayment plans&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>repayment plans<\/a><\/span>, if you qualify.<\/p>\n<p>Subsidized loans are available to undergraduates who demonstrate <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;financial need&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>financial need<\/a><\/span> through their Free Application for Federal Student Aid, or <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;FAFSA&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>FAFSA<\/a><\/span>. Unsubsidized loans are available to any undergraduate, graduate or professional student in school at least half-time. Here\u2019s how they compare.<\/p>\n<h2 id=\"what-is-a-subsidized-loan-\">What Is a Subsidized Loan?<\/h2>\n<p>As the name implies, direct subsidized loans are a type of federal student loan that come with a subsidy for borrowers, making them one of the cheapest loan options available. The \u201cdirect\u201d in their name comes from the William D. Ford Federal Direct Loan Program, the U.S. Department of Education initiative that makes these loans available. You may also see direct loans referred to by their old name, Stafford loans.<\/p>\n<p>As soon as you take out a subsidized loan, <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;interest&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>interest<\/a><\/span> starts accruing, but the government pays it on your behalf. As is true for most federal <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;student loans&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>student loans<\/a><\/span>, you are not required to make any payments\u2014on interest or principal\u2014while in school or for six months after leaving school. That means that on a subsidized loan, there will be no interest to add to the principal when those six months are up, so you\u2019ll only repay the original amount you borrowed.<\/p>\n<p>The government covers the interest on a subsidized loan during the following periods:<\/p>\n<ul>\n<li>While you\u2019re in school at least half-time<\/li>\n<li>During your six-month <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;grace period&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>grace period<\/a><\/span>, which occurs after you graduate, leave school or start attending less than half-time<\/li>\n<li>During periods of <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;deferment&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>deferment<\/a><\/span>, a type of payment-postponement period you\u2019re eligible for when you\u2019re unemployed, are undergoing cancer treatment, meet income guidelines qualifying you for economic hardship and in <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;certain other circumstances&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a href=\"https:\/\/studentaid.gov\/manage-loans\/lower-payments\/get-temporary-relief\/deferment#eligibility\" target=\"_blank\" rel=\"noopener\">certain other circumstances<\/a><\/span><\/li>\n<\/ul>\n<p>Interest will accrue, however, during periods of <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;forbearance&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>forbearance<\/a><\/span>, a different type of payment postponement. Also, due to a brief change in the congressional budget made in 2012, borrowers who took out direct subsidized loans between July 1, 2012 and July 1, 2014 must pay the interest that accrues during their grace period. Interest that doesn\u2019t qualify for the government subsidy will be added to the principal amount.<\/p>\n<h2 id=\"what-is-an-unsubsidized-loan-\">What Is an Unsubsidized Loan?<\/h2>\n<p>Unlike subsidized loans, unsubsidized loans do not come with an interest subsidy. These loans accrue interest at all times, which the borrower must eventually pay. But, similar to subsidized loans, you don\u2019t have to start paying off unsubsidized loans until after your grace period ends. At that time, interest that has accrued will be capitalized, or added to the principal balance you originally borrowed.<\/p>\n<p>Unsubsidized loans are more widely available than subsidized loans. You don\u2019t need to demonstrate financial need as a result of the information you provided on the FAFSA. You can also get them as a <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;graduate&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>graduate<\/a><\/span> or professional student.<\/p>\n<p><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Parents&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Parents<\/a><\/span>, however, cannot receive direct unsubsidized loans. In the federal loan program, they can only take out parent <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;PLUS loans&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>PLUS loans<\/a><\/span>, which have higher interest rates and fees.<\/p>\n<div data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Credible Widget&quot;,&quot;componentType&quot;:&quot;Credible-External Widget-Student Loan Rich Cta&quot;}\">\n<div class=\"credible-js-widget\">\n<div id=\"student-loan-rich-cta-687e2bd85bd5b\" data-ecom-external-widget=\"{&quot;tid&quot;:&quot;tid_value&quot;,&quot;partnerName&quot;:&quot;Credible&quot;,&quot;referenceText&quot;:&quot;Credible Widget&quot;}\"><\/div>\n<\/div>\n<\/div>\n<h2 id=\"how-much-can-you-borrow-in-subsidized-and-unsubsidized-loans-\">How Much Can You Borrow in Subsidized and Unsubsidized Loans?<\/h2>\n<p>The amount you can borrow depends on two factors: your year in school and whether you\u2019re financially independent from your parents. That\u2019s determined by a <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;set of questions&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a href=\"https:\/\/studentaid.gov\/apply-for-aid\/fafsa\/filling-out\/dependency#dependent-or-independent\" target=\"_blank\" rel=\"noopener\">set of questions<\/a><\/span> on the FAFSA.<\/p>\n<p>Both direct subsidized and unsubsidized loans have relatively low annual <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;loan limits&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>loan limits<\/a><\/span>. PLUS loans and many <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;private student loans&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a href=\"https:\/\/www.forbes.com\/advisor\/student-loans\/best-private-student-loans\/\">private student loans<\/a><\/span>, on the other hand, let you borrow up to the school\u2019s total cost\u2014which includes tuition, fees, room, board, books, transportation and other expenses\u2014minus other financial aid you\u2019ve gotten.<\/p>\n<p>If you\u2019re an independent student or a dependent undergraduate student whose parents didn\u2019t pass the credit check required to get PLUS loans, you can take out a higher amount of unsubsidized loans.<\/p>\n<p>You or your parent won\u2019t pass the <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;PLUS loan credit check&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a href=\"https:\/\/studentaid.gov\/sites\/default\/files\/plus-adverse-credit.pdf\" target=\"_blank\" rel=\"noopener\">PLUS loan credit check<\/a><\/span> if you have more than about $2,000 in debt that\u2019s at least 90 days delinquent, or if you had a bankruptcy, foreclosure or certain other negative marks on your credit report in the past five years. You may still be able to get a PLUS loan, though, by using a qualified <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;co-signer&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>co-signer<\/a><\/span>, or by explaining the reasons for the negative marks on your credit to the satisfaction of the U.S. Department of Education.<\/p>\n<p>Here\u2019s how the subsidized and unsubsidized borrowing maximums break down:<\/p>\n<p><!-- fadv:ignore-wpautop --><\/p>\n<div class=\"mkpl-shortcode-instance default variation-1 advisor\" data-custom-value=\"mkpl-tables-\" data-variation=\"variation-1\" data-ecom-container=\"{&quot;componentTitle&quot;:&quot;&quot;,&quot;componentType&quot;:&quot;Simple Table&quot;}\">\n<div id=\"mkpl-table-container\" class=\"open\">\n<div id=\"mkpl-table-main-container\">\n<div id=\"mkpl-table-scroll\" class=\"table-container \">\n<table id=\"mkpl-market-table\" data-mc=\"0\" data-tcc=\"3\" class=\"mkpl-simple_tables table style-1\" data-initial-visible-rows=\"10\" data-expand_table=\"1\" style=\"text-align: left\">\n<tr class=\"thead\" style=\"background-color: #4657A1 !important\">\n<th style=\"text-align: left\" class=\"primary-font\">\t\t\t\t\tYear in school                <\/th>\n<th style=\"text-align: left\" class=\"primary-font\">\t\t\t\t\tDependent students, except students whose parents can\u2019t get PLUS loans                <\/th>\n<th style=\"text-align: left\" class=\"primary-font\">\t\t\t\t\tIndependent students and dependent undergraduates whose parents can\u2019t get PLUS loans                <\/th>\n<\/tr>\n<tr style=\"background-color: #f8f8f8\">\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">First-year undergraduate<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Total subsidized and unsubsidized loan limit: $5,500<br \/>\nSubsidized loan limit within total: $3,500<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Total subsidized and unsubsidized loan limit: $9,500<br \/>\nSubsidized loan limit within total: $3,500<\/div>\n<\/td>\n<\/tr>\n<tr style=\"background-color: #f8f8f8\">\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Second-year undergraduate<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Total subsidized and unsubsidized loan limit: $6,500<br \/>\nSubsidized loan limit within total: $4,500<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Total subsidized and unsubsidized loan limit: $10,500<br \/>\nSubsidized loan limit within total: $4,500<\/div>\n<\/td>\n<\/tr>\n<tr style=\"background-color: #f8f8f8\">\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Third-year and beyond undergraduate<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Total subsidized and unsubsidized loan limit: $7,500<br \/>\nSubsidized loan limit within total: $5,500<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Total subsidized and unsubsidized loan limit: $12,500<br \/>\nSubsidized loan limit within total: $5,500<\/div>\n<\/td>\n<\/tr>\n<tr style=\"background-color: #f8f8f8\">\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Graduate or professional student<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">N\/A (all are considered independent)<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Total unsubsidized loan limit: $20,500 (cannot get subsidized loans)<\/div>\n<\/td>\n<\/tr>\n<tr style=\"background-color: #f8f8f8\">\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Aggregate loan limit<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Total subsidized and unsubsidized loan limit: $31,000<br \/>\nSubsidized loan limit within total: $23,000<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Total subsidized and unsubsidized loan limit for undergraduates: $57,500<br \/>\nSubsidized loan limit within total: $23,000<br \/>\nTotal subsidized and unsubsidized loan limit for graduate and professional students: $138,500 (includes undergraduate study)<br \/>\nSubsidized loan limit within total: $65,500 (includes undergraduate study)<\/div>\n<\/td>\n<\/tr>\n<\/table>\n<div>                    <button type=\"button\" id=\"left-arrow\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;Left&quot;,&quot;clickType&quot;:&quot;Button&quot;,&quot;referenceText&quot;:&quot;&quot;}\">                        <img src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"Left Arrow\" class=\"lazyload\" data-src=\"image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAcAAAAMCAYAAACulacQAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAADJSURBVHgBXZCxDcIwEEXvLrbTMgIjeAQXQB0aUiBENgAmIBswQkJJg6iQaGAF2CBskBY5wbEjWXLiwjr73f\/\/dAijo5JiEse01Zrd2BhwgS8DIDnXcgBFjAUASltWkeY5eTBPSwcSW9ZMM3W\/rr+9crY6HxEgcwCBeuD+yQFCyPsH\/pePy+bj3YiCzLaNTDgDumuRlidb7o2BmpCUV2M4EAJmrqFtmHzaXAxtfAOAqRrNVRgJ+mcOFryt4dQuIR8o\/ZaEoB1rWNkBtuxEvL1bUnQAAAAASUVORK5CYII=\">                    <\/button>                    <button type=\"button\" id=\"right-arrow\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;Right&quot;,&quot;clickType&quot;:&quot;Button&quot;,&quot;referenceText&quot;:&quot;&quot;}\">                        <img src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"Right Arrow\" class=\"lazyload\" data-src=\"image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAcAAAAMCAYAAACulacQAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAADQSURBVHgBdVC5DcJAENw53pAS6AA6wAlPCAGCDLsSoAJEBXwJEDk0JrA7wCW4BMeH5GXP2MggscHenEYzNzew5rt2PVULrdNt6DoJlUY1GEsCrWp1BNZ41\/oiAV7LGQPo1hrYlEmYNRLrlNVDYIuJ9\/eL7WRKs7yzE4OUJTABwR7M9puPspj+9NiD4tDglGml6M8YolJchrNTh8CewCaJyr8u1plt9tc8ECTQLQ+EN4FAYJuIXf9iTwq3qimBhWDm6KnZKb9bzUpgRFrz4be+FwjJTXtIGD7JAAAAAElFTkSuQmCC\">                    <\/button>                <\/div>\n<\/p><\/div>\n<p>\t\t\t            <button id=\"seeMoreBtn\" type=\"button\" class=\"primary-font\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;See More&quot;,&quot;clickType&quot;:&quot;Button&quot;,&quot;referenceText&quot;:&quot;&quot;}\">See More<\/button>            <button id=\"seeLessBtn\" type=\"button\" class=\"primary-font\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;See Less&quot;,&quot;clickType&quot;:&quot;Button&quot;,&quot;referenceText&quot;:&quot;&quot;}\">See Less<\/button>        <\/div>\n<\/p><\/div>\n<\/div>\n<p><!-- \/fadv:ignore-wpautop --><\/p>\n<p>It\u2019s possible to get student loans for more than four years of study, as long as you maintain \u201c<span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;satisfactory academic progress&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a href=\"https:\/\/studentaid.gov\/understand-aid\/eligibility\/staying-eligible\" target=\"_blank\" rel=\"noopener\">satisfactory academic progress<\/a><\/span>,\u201d as defined by your school. That usually means taking a certain number of credits each semester or maintaining a certain GPA. If you don\u2019t meet these guidelines, you could lose your eligibility for federal student aid.<\/p>\n<h2 id=\"key-differences-subsidized-vs-unsubsidized-loans\">Key Differences: Subsidized vs. Unsubsidized Loans<\/h2>\n<p>There are some substantial differences between federal direct subsidized and unsubsidized loans. But both are still a better bet than PLUS loans or private loans in most cases since they\u2019re less expensive and don\u2019t require a credit check.<\/p>\n<p><!-- fadv:ignore-wpautop --><\/p>\n<div class=\"mkpl-shortcode-instance default variation-1 advisor\" data-custom-value=\"mkpl-tables-\" data-variation=\"variation-1\" data-ecom-container=\"{&quot;componentTitle&quot;:&quot;&quot;,&quot;componentType&quot;:&quot;Simple Table&quot;}\">\n<div id=\"mkpl-table-container\" class=\"open\">\n<div id=\"mkpl-table-main-container\">\n<div id=\"mkpl-table-scroll\" class=\"table-container \">\n<table id=\"mkpl-market-table\" data-mc=\"0\" data-tcc=\"3\" class=\"mkpl-simple_tables table style-1\" data-initial-visible-rows=\"10\" data-expand_table=\"1\" style=\"text-align: left\">\n<tr class=\"thead\" style=\"background-color: #4657A1 !important\">\n<th style=\"text-align: left\" class=\"primary-font\">\t\t\t\t\tFeature                <\/th>\n<th style=\"text-align: left\" class=\"primary-font\">\t\t\t\t\tSubsidized loans                <\/th>\n<th style=\"text-align: left\" class=\"primary-font\">\t\t\t\t\tUnsubsidized loans                <\/th>\n<\/tr>\n<tr style=\"background-color: #f8f8f8\">\n<td class=\" wysiwyg-editor bold-col-title\">\n<div class=\"cell-content primary-font\"><strong>Who may borrow<\/strong><\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Undergraduates only<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Undergraduates, graduate students and professional students<\/div>\n<\/td>\n<\/tr>\n<tr style=\"background-color: #f8f8f8\">\n<td class=\" wysiwyg-editor bold-col-title\">\n<div class=\"cell-content primary-font\"><strong>How interest is treated<\/strong><\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Borrower does not pay interest while in school at least half-time, during the grace period or during deferment periods<\/div>\n<\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">Interest accrues at all times<\/div>\n<\/td>\n<\/tr>\n<tr style=\"background-color: #f8f8f8\">\n<td class=\" wysiwyg-editor bold-col-title\">\n<div class=\"cell-content primary-font\"><strong>Interest rate<\/strong><\/div>\n<\/td>\n<td class=\" number\">\t\t\t\t\t0.0275                <\/td>\n<td class=\" wysiwyg-editor\">\n<div class=\"cell-content primary-font\">2.75% for undergraduates, 4.30% for graduate and professional students<\/div>\n<\/td>\n<\/tr>\n<tr style=\"background-color: #f8f8f8\">\n<td class=\" wysiwyg-editor bold-col-title\">\n<div class=\"cell-content primary-font\"><strong>Loan disbursement fee<\/strong><\/div>\n<\/td>\n<td class=\" number\">\t\t\t\t\t0.01059                <\/td>\n<td class=\" number\">\t\t\t\t\t0.01059                <\/td>\n<\/tr>\n<\/table>\n<div>                    <button type=\"button\" id=\"left-arrow\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;Left&quot;,&quot;clickType&quot;:&quot;Button&quot;,&quot;referenceText&quot;:&quot;&quot;}\">                        <img src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"Left Arrow\" class=\"lazyload\" data-src=\"image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAcAAAAMCAYAAACulacQAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAADJSURBVHgBXZCxDcIwEEXvLrbTMgIjeAQXQB0aUiBENgAmIBswQkJJg6iQaGAF2CBskBY5wbEjWXLiwjr73f\/\/dAijo5JiEse01Zrd2BhwgS8DIDnXcgBFjAUASltWkeY5eTBPSwcSW9ZMM3W\/rr+9crY6HxEgcwCBeuD+yQFCyPsH\/pePy+bj3YiCzLaNTDgDumuRlidb7o2BmpCUV2M4EAJmrqFtmHzaXAxtfAOAqRrNVRgJ+mcOFryt4dQuIR8o\/ZaEoB1rWNkBtuxEvL1bUnQAAAAASUVORK5CYII=\">                    <\/button>                    <button type=\"button\" id=\"right-arrow\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;Right&quot;,&quot;clickType&quot;:&quot;Button&quot;,&quot;referenceText&quot;:&quot;&quot;}\">                        <img src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"Right Arrow\" class=\"lazyload\" data-src=\"image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAcAAAAMCAYAAACulacQAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAADQSURBVHgBdVC5DcJAENw53pAS6AA6wAlPCAGCDLsSoAJEBXwJEDk0JrA7wCW4BMeH5GXP2MggscHenEYzNzew5rt2PVULrdNt6DoJlUY1GEsCrWp1BNZ41\/oiAV7LGQPo1hrYlEmYNRLrlNVDYIuJ9\/eL7WRKs7yzE4OUJTABwR7M9puPspj+9NiD4tDglGml6M8YolJchrNTh8CewCaJyr8u1plt9tc8ECTQLQ+EN4FAYJuIXf9iTwq3qimBhWDm6KnZKb9bzUpgRFrz4be+FwjJTXtIGD7JAAAAAElFTkSuQmCC\">                    <\/button>                <\/div>\n<\/p><\/div>\n<p>\t\t\t            <button id=\"seeMoreBtn\" type=\"button\" class=\"primary-font\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;See More&quot;,&quot;clickType&quot;:&quot;Button&quot;,&quot;referenceText&quot;:&quot;&quot;}\">See More<\/button>            <button id=\"seeLessBtn\" type=\"button\" class=\"primary-font\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;See Less&quot;,&quot;clickType&quot;:&quot;Button&quot;,&quot;referenceText&quot;:&quot;&quot;}\">See Less<\/button>        <\/div>\n<\/p><\/div>\n<\/div>\n<p><!-- \/fadv:ignore-wpautop --><\/p>\n<h2 id=\"how-do-you-pay-back-unsubsidized-and-subsidized-student-loans-\">How Do You Pay Back Unsubsidized and Subsidized Student Loans?<\/h2>\n<p>Federal student loans have several repayment options. Direct subsidized and unsubsidized loans qualify for all federal repayment plans, though you may have to meet other criteria for certain <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;income-driven repayment plans&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>income-driven repayment plans<\/a><\/span>.<\/p>\n<p>Unless you choose another option during your mandatory exit counseling session, you\u2019ll automatically be placed on the 10-year standard repayment plan, which breaks up your balance into 120 monthly payments. Your other repayment options include:<\/p>\n<ul>\n<li><strong><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Graduated repayment.&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Graduated repayment.<\/a><\/span><\/strong> You\u2019ll pay less at first, then payments will steadily increase. The plan lasts for 10 years.<\/li>\n<li><strong>Income-driven repayment.<\/strong> There are four primary plans that call for monthly payments based on income: income-based repayment, income-contingent repayment, Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE). The best option depends on your circumstances, so consult with your <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;student loan servicer&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>student loan servicer<\/a><\/span>\u2014the company that manages your payments\u2014for advice. You\u2019ll make payments for 20 or 25 years, depending on the plan, and the remainder of the balance will be forgiven if there\u2019s anything left at that end of the term.<\/li>\n<li><strong><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Extended repayment.&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Extended repayment.<\/a><\/span><\/strong> You\u2019ll pay fixed or graduated monthly payments for 25 years. This is not an ideal option, since you\u2019ll pay a lot in interest and won\u2019t receive the benefit of forgiveness at the end.<\/li>\n<\/ul>\n<p>If you need to pause payments, you can contact your servicer and apply for <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;deferment or forbearance&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>deferment or forbearance<\/a><\/span> for up to 36 months. If you have subsidized loans and you qualify for deferment, this is the lower-cost choice. But either program will give you breathing room to pay other bills temporarily. For longer-term financial hardship, income-driven repayment makes more sense.<\/p>\n<h2 id=\"how-do-you-apply-for-federal-direct-loans-\">How Do You Apply For Federal Direct Loans?<\/h2>\n<p>To <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;apply for any federal student loan&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>apply for any federal student loan<\/a><\/span>\u2014or federal financial aid, for that matter\u2014submit the FAFSA for each year you\u2019re in college. The FAFSA will help schools determine if you have enough financial need to qualify for subsidized loans. The school will send you an <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;award letter&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>award letter<\/a><\/span> after you\u2019ve been accepted outlining the loan types and amounts it suggests you borrow.<\/p>\n<p>You\u2019re not required to take out the maximum amount of loans you\u2019ve been awarded, and you can accept only a portion of the loans you were offered if you don\u2019t need them. Once you\u2019ve accepted your award, you\u2019ll complete student loan entrance counseling through the federal government. You\u2019ll then sign a contract explaining the terms of your loan.<\/p>\n<div id=\"cta-builder\" class=\"cta-builder exclude-eds default dark-mode\" data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Compare Personalized Student Loan Rates&quot;,&quot;componentType&quot;:&quot;CTA Builder&quot;}\">\n<div class=\"cta-builder__wrap \" data-ecom-product=\"{&quot;itemId&quot;:&quot;&quot;,&quot;itemName&quot;:&quot;Compare Personalized Student Loan Rates&quot;,&quot;itemBrand&quot;:&quot;Credible&quot;,&quot;itemCategory&quot;:&quot;Student Loans&quot;,&quot;itemCategory2&quot;:&quot;&quot;,&quot;itemCategory3&quot;:&quot;&quot;,&quot;itemCategory4&quot;:&quot;&quot;,&quot;price&quot;:0,&quot;quantity&quot;:1,&quot;affiliation&quot;:&quot;Credible&quot;,&quot;coupon&quot;:&quot;&quot;,&quot;secondaryCallout&quot;:&quot;&quot;,&quot;initialCost&quot;:0,&quot;subscriptionCost&quot;:0}\">\n<div class=\"left\">\n<h2 class=\"cta-builder__title\">Compare Personalized Student Loan Rates<\/h2>\n<p class=\"cta-builder__desc\">Takes Up To 3 Minutes<\/p>\n<\/div>\n<div class=\"right\">\n\t\t\t<a href=\"https:\/\/www.credible.com\/student-loans\/?utm_source=forbes&amp;utm_medium=partner_link&amp;utm_campaign=cta&amp;utm_content=Forbes_TID_value\" class=\"cta-builder__btn cta-builder-button\" data-nofollow=\"true\" data-component=\"Default with Blue Background\" data-cta-placement=\"Button Link\" style=\"background-color:#13B698\" data-trellis-widget-wrapper-id=\"687e2bd85fba3\" data-ecom-conversion=\"{&quot;clickText&quot;:&quot;Compare Rates  Via Credible.com&#039;s Website&quot;,&quot;clickUrl&quot;:&quot;https:\/\/www.credible.com\/student-loans\/?utm_source=forbes&amp;utm_medium=partner_link&amp;utm_campaign=cta&amp;utm_content=Forbes_TID_value&quot;,&quot;partnerName&quot;:&quot;Credible&quot;}\"><br \/>\n\t\t\t\t<span>Compare Rates <br \/> Via Credible.com&#8217;s Website<\/span><br \/>\n\t\t\t<\/a>\n\t\t<\/div>\n<\/div>\n<\/div>\n<hr class=\"wp-block-separator has-css-opacity\" \/>\n","protected":false},"excerpt":{"rendered":"<p>If you need student loans to pay for school, the first loan types you should consider are federal direct subsidized and unsubsidized loans. They\u2019re typically the lowest-cost student loan option, and subsidized loans in particular have the most generous repayment plans, if you qualify. Subsidized loans are available to undergraduates who demonstrate financial need through their Free Application for Federal Student Aid, or FAFSA. Unsubsidized loans are available to any undergraduate, graduate or professional student in school at least half-time. Here\u2019s how they compare. What Is a Subsidized Loan? As the name implies, direct subsidized loans are a type of federal student loan that come with a subsidy for borrowers, making them one of the cheapest loan options available. The \u201cdirect\u201d in their name comes from the William D. Ford Federal Direct Loan Program, the U.S. Department of Education initiative that makes these loans available. You may also see direct loans referred to by their old name, Stafford loans. As soon as you take out a subsidized loan, interest starts accruing, but the government pays it on your behalf. As is true for most federal student loans, you are not required to make any payments\u2014on interest or principal\u2014while in school or for six months after leaving school. That means that on a subsidized loan, there will be no interest to add to the principal when those six months are up, so you\u2019ll only repay the original amount you borrowed. The government covers the interest on a subsidized loan during the following periods: While you\u2019re in school at least half-time During your six-month grace period, which occurs after you graduate, leave school or start attending less than half-time During periods of deferment, a type of payment-postponement period you\u2019re eligible for when you\u2019re unemployed, are undergoing cancer treatment, meet income guidelines qualifying you for economic hardship and in certain other circumstances Interest will accrue, however, during periods of forbearance, a different type of payment postponement. Also, due to a brief change in the congressional budget made in 2012, borrowers who took out direct subsidized loans between July 1, 2012 and July 1, 2014 must pay the interest that accrues during their grace period. Interest that doesn\u2019t qualify for the government subsidy will be added to the principal amount. What Is an Unsubsidized Loan? Unlike subsidized loans, unsubsidized loans do not come with an interest subsidy. These loans accrue interest at all times, which the borrower must eventually pay. But, similar to subsidized loans, you don\u2019t have to start paying off unsubsidized loans until after your grace period ends. At that time, interest that has accrued will be capitalized, or added to the principal balance you originally borrowed. Unsubsidized loans are more widely available than subsidized loans. You don\u2019t need to demonstrate financial need as a result of the information you provided on the FAFSA. You can also get them as a graduate or professional student. Parents, however, cannot receive direct unsubsidized loans. In the federal loan program, they can only take out parent PLUS loans, which have higher interest rates and fees. How Much Can You Borrow in Subsidized and Unsubsidized Loans? The amount you can borrow depends on two factors: your year in school and whether you\u2019re financially independent from your parents. That\u2019s determined by a set of questions on the FAFSA. Both direct subsidized and unsubsidized loans have relatively low annual loan limits. PLUS loans and many private student loans, on the other hand, let you borrow up to the school\u2019s total cost\u2014which includes tuition, fees, room, board, books, transportation and other expenses\u2014minus other financial aid you\u2019ve gotten. If you\u2019re an independent student or a dependent undergraduate student whose parents didn\u2019t pass the credit check required to get PLUS loans, you can take out a higher amount of unsubsidized loans. You or your parent won\u2019t pass the PLUS loan credit check if you have more than about $2,000 in debt that\u2019s at least 90 days delinquent, or if you had a bankruptcy, foreclosure or certain other negative marks on your credit report in the past five years. You may still be able to get a PLUS loan, though, by using a qualified co-signer, or by explaining the reasons for the negative marks on your credit to the satisfaction of the U.S. Department of Education. Here\u2019s how the subsidized and unsubsidized borrowing maximums break down: Year in school Dependent students, except students whose parents can\u2019t get PLUS loans Independent students and dependent undergraduates whose parents can\u2019t get PLUS loans First-year undergraduate Total subsidized and unsubsidized loan limit: $5,500 Subsidized loan limit within total: $3,500 Total subsidized and unsubsidized loan limit: $9,500 Subsidized loan limit within total: $3,500 Second-year undergraduate Total subsidized and unsubsidized loan limit: $6,500 Subsidized loan limit within total: $4,500 Total subsidized and unsubsidized loan limit: $10,500 Subsidized loan limit within total: $4,500 Third-year and beyond undergraduate Total subsidized and unsubsidized loan limit: $7,500 Subsidized loan limit within total: $5,500 Total subsidized and unsubsidized loan limit: $12,500 Subsidized loan limit within total: $5,500 Graduate or professional student N\/A (all are considered independent) Total unsubsidized loan limit: $20,500 (cannot get subsidized loans) Aggregate loan limit Total subsidized and unsubsidized loan limit: $31,000 Subsidized loan limit within total: $23,000 Total subsidized and unsubsidized loan limit for undergraduates: $57,500 Subsidized loan limit within total: $23,000 Total subsidized and unsubsidized loan limit for graduate and professional students: $138,500 (includes undergraduate study) Subsidized loan limit within total: $65,500 (includes undergraduate study) See More See Less It\u2019s possible to get student loans for more than four years of study, as long as you maintain \u201csatisfactory academic progress,\u201d as defined by your school. That usually means taking a certain number of credits each semester or maintaining a certain GPA. If you don\u2019t meet these guidelines, you could lose your eligibility for federal student aid. Key Differences: Subsidized vs. Unsubsidized Loans There are some substantial differences between federal direct subsidized and unsubsidized loans. But both are still a better bet than PLUS loans or private loans in most cases since they\u2019re less expensive and don\u2019t require a credit check. Feature Subsidized loans Unsubsidized loans Who may borrow Undergraduates only Undergraduates, graduate students and professional students How interest is treated Borrower does not pay interest while in school at least half-time, during the grace period or during deferment periods Interest accrues at all times Interest rate 0.0275 2.75% for undergraduates, 4.30% for graduate and professional students Loan disbursement fee 0.01059 0.01059 See More See Less How Do You Pay Back Unsubsidized and Subsidized Student Loans? Federal student loans have several repayment options. Direct subsidized and unsubsidized loans qualify for all federal repayment plans, though you may have to meet other criteria for certain income-driven repayment plans. Unless you choose another option during your mandatory exit counseling session, you\u2019ll automatically be placed on the 10-year standard repayment plan, which breaks up your balance into 120 monthly payments. Your other repayment options include: Graduated repayment. You\u2019ll pay less at first, then payments will steadily increase. The plan lasts for 10 years. Income-driven repayment. There are four primary plans that call for monthly payments based on income: income-based repayment, income-contingent repayment, Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE). The best option depends on your circumstances, so consult with your student loan servicer\u2014the company that manages your payments\u2014for advice. You\u2019ll make payments for 20 or 25 years, depending on the plan, and the remainder of the balance will be forgiven if there\u2019s anything left at that end of the term. Extended repayment. You\u2019ll pay fixed or graduated monthly payments for 25 years. This is not an ideal option, since you\u2019ll pay a lot in interest and won\u2019t receive the benefit of forgiveness at the end. If you need to pause payments, you can contact your servicer and apply for deferment or forbearance for up to 36 months. If you have subsidized loans and you qualify for deferment, this is the lower-cost choice. But either program will give you breathing room to pay other bills temporarily. For longer-term financial hardship, income-driven repayment makes more sense. How Do You Apply For Federal Direct Loans? To apply for any federal student loan\u2014or federal financial aid, for that matter\u2014submit the FAFSA for each year you\u2019re in college. The FAFSA will help schools determine if you have enough financial need to qualify for subsidized loans. The school will send you an award letter after you\u2019ve been accepted outlining the loan types and amounts it suggests you borrow. You\u2019re not required to take out the maximum amount of loans you\u2019ve been awarded, and you can accept only a portion of the loans you were offered if you don\u2019t need them. Once you\u2019ve accepted your award, you\u2019ll complete student loan entrance counseling through the federal government. You\u2019ll then sign a contract explaining the terms of your loan. Compare Personalized Student Loan Rates Takes Up To 3 Minutes Compare Rates Via Credible.com&#8217;s Website<\/p>\n","protected":false},"author":1,"featured_media":299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/posts\/310"}],"collection":[{"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/comments?post=310"}],"version-history":[{"count":1,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/posts\/310\/revisions"}],"predecessor-version":[{"id":311,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/posts\/310\/revisions\/311"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/media\/299"}],"wp:attachment":[{"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/media?parent=310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/categories?post=310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/tags?post=310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}