Subsidized vs. unsubsidized loan: what's the difference — and do you repay them?
Do you repay it? Yes
Yes — both are loans you repay with interest. They are not aid.
A Direct Subsidized loan doesn't accrue interest while you're in school; an Unsubsidized loan does. Both must be repaid. A letter that lists them inside an 'aid' total is making the offer look bigger than the free money you actually got.
Per year vs. per semester: Loan amounts are per year. Federal limits ($5,500 / $6,500 / $7,500) rise by year in school.
What it looks like on your letter
Federal Direct Subsidized LoanFederal Direct Unsubsidized LoanStafford LoanDirect LoanNot sure how this affects your price?
Decode your award letter and we'll separate real aid from loans automatically.
Decode my letter