subsidized loans
Cheaper government lending
Subsidized loans are loans where a third party—typically a government—pays part of the interest or principal, reducing the borrower's cost.
Most commonly refers to federal student loans where the government covers interest while the student is in school: She took out subsidized loans for her first two years of college.
The subsidy makes borrowing cheaper than market rates would allow.
- student loansBorrowed funds for tuition
- grantsAwarded funds for purposes
- Pell GrantsFederal need-based college funding
- debtMoney owed another
- aidSupport given freely
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