subsidized loan
Government-backed debt
A subsidized loan is a loan where a third party—typically the government—pays some or all of the interest during certain periods, reducing the borrower's cost.
Most commonly refers to federal student loans where the government covers interest while the student is enrolled: I qualified for a subsidized loan because of my financial need.
Contrast with unsubsidized loans, where interest accrues from day one.
- financial aidFunding for education expenses
- FAFSAFederal aid application form
- financial needInsufficient resources for expenses
- tuitionPayment for instruction
- cost of attendanceAll enrollment-related charges
college · interest · interest rate · repayment · repayment plan · borrower · deferment · government · Stafford · undergraduate · grants · debt · lender · promissory note · bursar · disbursement · need-based · federal
- loanslend, borrow, borrower, lender, microloan
- federal loansfederal aid, FAFSA, federal grants, Pell Grant
subsidized loanunsubsidized loan
Loan without financial assistance
conventional loan · commercial loan · private loan · payday loan · subprime loan
subsidize, subsidized, subsidizing, subsidy, subsidies, subsidiary, subsidiaries, subsidization, loan