Subsidized Or Unsubsidized Loans, What's The Difference?

By Franklin Skribbit

There are a lot of stressful and difficult things about college. But luckily the benefits outnumber the disadvantages. By far.

First up is the subsidized loan. The major benefits of this loan are that (1) the government backs your loan (allowing you to secure better terms), and (2) no interest can accrue on the loan while you attend school half-time.

First, it's fun. Even though most people dislike homework, everyone likes learning. When we were kids learning was called adventure.

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Everything new was great and exciting. And it still is! Even though our adult adventures of discovery are a little more formal than they were when we were children, schooling still provides the same opportunity to explore.

Unsubsidized loans, on the other hand, are available to undergraduate and graduate students, and are still backed by the government. The only difference is that the interest on these loans begins accumulating from the time the loan is taken out.

Second, school pays off. College can be expensive, but it will always be worth it. It is common knowledge that people who obtain a degree get better jobs. Don't assume that you will be that special exception that gets away with a fabulous job without a degree.

There are often limits to the amount you can receive each year here as well. The specifics will be dependent upon the school financial aid office.

It doesn't matter if you majored in graphic arts or physics; a degree of any kind will prove to any future employer that you have what it takes to succeed. Without a degree, well, you could be wearing a bright blue t-shirt at Wal-Mart for the rest of your life.


This is where you will really feel that you are making a difference. You will enjoy your job more, you will receive nice benefits, your job will be more stable, and you can build strong, lasting relationships with people like yourself. This will affect your health, happiness, and overall quality of life.

These students apply with the financial aid office. The office will determine if (1) they have sufficient need, and then (2) how much they can offer the student.

Simply put, when you have a degree you have more choices. And after you get some experience working in your field, those choices will increase. We all appreciate having control over our lives, including our work. A degree will do that for you.

Once those two basics are met, it's just down to the individual requirements for each loan type to determine which loan you should apply for. If you think you qualify for a subsidized loan, then give it a shot.

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