What is a subsidized loan?
A subsidized student loan is a loan in which the interest
payments are subsidized. In general terms there is no interest
added to the loan until it comes due for payment. A non-subsidized
loan requires interest payments during the time a student is in
school
Related Q&A:
What is the term for a loan in which the interest rate does not change during the entire term of the-Well, that kind of loan is commonly known as a fixed-rate loan. Oh my goodness, it's a pretty straightforward concept. With a fixed-rate loan, you know exactly what the interest rate is going to be for the entire duration of the loan. There's no worrying about it going up or down unexpectedly. It gives you a sense of stability and predictability in your borrowing. So, if you want a loan where you can plan your payments without the stress of fluctuating interest rates, a fixed-rate loan is the way to go. How cool is that?