<p>We are new in the process, first time.
I am not sure I understand the difference btw Subsidized vs. Unsubsidized federal Loans.
I would appreciate feedback on this matter.
Thanks</p>
<p>I am not sure which one is better.</p>
<p>Subsidized is better. The government pays the interest on a subsidized loan until you graduate or drop below half time plus a six month grace period. With an unsubsidized loan you are responsible for the interest from the day the loan is disbursed. Also the interest is lower on the subsidized loans.</p>
<p>Subsidized Stafford loan - for loans disbursed the 2011-2012 school year the interest rate will be 3.4% (though this is paid by the govt until you graduate or drop below 1/2 time)</p>
<p>Perkins loan is subsidized. The interest is 5%. The govt pays the interest until you graduate or drop below half time plus a 9 month grace period.</p>
<p>Unsubsidized Stafford loan has an interest rate of 6.8%. You are responsible for the interest from the day the loan is disbursed.</p>
<p>You can find good information about financial aid at [FinAid</a>! Financial Aid, College Scholarships and Student Loans](<a href=“http://www.finaid.org%5DFinAid”>http://www.finaid.org)</p>
<p>Do we get negative points in the financial aid office if we accept subsidized loan only and reject the unsubsidized offer?
Thanks a lot!</p>