<p>So I applied for a subsidized loan but found out that i am limited to only an unsubsidized loan. Can anyone explain to me how an unsubsidized loan works? Because I know that for subsidized loan (or correct me if i'm wrong) the gov't pays for the interest while i'm in school and once i'm done i'll have to pay them back. The only thing i know about unsubsidized loan is that I'll have to pay for any interest that comes up but what exactly does that mean? </p>
<p>And I know that payments for UCF are due Sep. 4th so since bright futures pays 75% of that for me and I get the loan does that mean i won't have to pay nething on Sep. 4th? </p>
<p>thanks!</p>
<p>I found this on a website explaining the difference between the two types of loans:</p>
<pre><code>* Subsidized loans are awarded on the basis of financial need. You won’t be charged any interest before you begin repaying the loan because the federal government subsidizes the interest during this time.
- Unsubsidized loans charge interest from the time the money is first disbursed until it is paid in full. The interest is capitalized, meaning that you pay interest on any interest that has already accrued. One way to minimize how much interest accrues is to pay the interest as it accumulates.
</code></pre>
<p>So in the case of unsubsidized loans you’d be charged interest as soon as the loan money is spent.</p>
<p>I’m not sure about your last question. Actually, I have a question if anything. What’s bright futures?</p>
<p>Yeah i saw that on UCF’s financial aid website. i’m just curious as to how i would pay the interest and how that worked.</p>
<p>as for bright futures it’s florida’s statewide scholarship and depending on your grades, SAT’s scores, and ACT’s scores you’re awarded either 100% or 75% scholarship. Meaning they’ll pay that amount of your tuition but i think they recently changed it but it’s still pretty much the same.</p>