<p>What's the difference between the two?</p>
<p>Subsidized loans - the govt pays the interest until you graduate or drop below half time plus a grace period. The 2 subsidized loans are :
- Subsidized Stafford (or direct FFEL if your school participates). Interest rate is 5.6% on loans disbursed 2009-2010 school year. Govt pays the interest till you graduate/drop below 1/2 time, plus for a 6 month grace period. There may be origination fees depending on the lender.
- Perkins loan. Interest rate is 5%. Govt pays the interest till you graduate/drop below 1/2 time, plus for a 9 month grace period. There are no origination fees.</p>
<p>Unsubsidized student loans you are responsible for the interest from the day the loan is disbursed. The interest may be deferred until you graduate plus a grace period but you will have to pay the interest even if you pay the loan off early. The student unsub loan is the unsubsidized stafford or direct loan. The interest rate is 6.8%. There may be origination fees depending on the lender.</p>
<p>The maximum Stafford for a freshman is $5500 of which up to $3500 may be subsidized if their is ‘need’. </p>
<p>The Perkins loan is quite hard to get as there is limited funding. Some schools do not offer it at all.</p>