Government Student Loans: Unsubsidized vs. Subsidized Student Loans
Direct Subsidized and Direct Unsubsidized Loans are offered by the U.S. Department of Education to help eligible students cover the cost of higher education at a four-year college, university, community college, or school.
The rising cost of higher education is forcing more students to take out loans to cover their expenses. While some students choose loans from private lenders, an estimated 43.4 million borrowers have federal student loans as of 2022.
Federal direct loans may or may not be subsidized. The loans offer numerous benefits, including flexible repayment options, low-interest rates, loan consolidation options, and deferral and leniency programs.