What's the difference between subsidized and unsubsidized Federal loans?

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For most Americans headed to college, taking out a loan to pay for college is a necessity. But once you get into the weeds of learning about the different types of loans, things can get confusing. 

 Ideally, you're starting to pay for college with any need-based and merit-based aid, then savings and cash. Then, you're applying for loans. 

 Taking out a Federal loan can help protect yourself and get a lower rate. But what's the difference between a subsidized and unsubsidized Federal loan? Before we find out how they're different, it's essential to realize how they're similar. 

How Are Subsidized And Unsubsidized Federal Loans Similar?

The Federal government offers college undergraduate students access to both subsidized and unsubsidized loans. 

Both loans offer government-sponsored protections for students, such as flexible repayment plans and low-interest rates.

Read more on Edmit’s blog.

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