| When you are trying to take the next step in | | | | are in school. The only way to keep these loans in |
| advancing your education, how you will fund that | | | | check is to pay your interest monthly throughout |
| education can be the furthest thing from your mind. | | | | your academic career. |
| Many financial aid departments will tell you that you | | | | Another thing that may confuse you is consolidation. |
| are getting a variety of funding, including subsidized | | | | Subsidized student loans cannot be consolidated until |
| student loans. Not knowing what they are talking | | | | you graduate school. However, since you do not |
| about, but understanding that you must sign on the | | | | have to pay on them at all and you do not accrue |
| dotted line to attend school, you simply nod your | | | | interest until you graduate, you really have no need |
| head and agree to the funding terms. | | | | to consolidate them. |
| Unfortunately, most financial aid departments don't | | | | One way you can tell if a loan is unsubsidized is |
| attempt to go into great detail when helping you | | | | whether or not a credit check was required for the |
| arrange for your education. Their one and only goal is | | | | loan. Most subsidized student loans do not require a |
| to get you the funding you need so that they can | | | | credit check, because they are federally backed and |
| earn more tuition for their school. They are not | | | | loaned through federal programs. However, |
| concerned with your needs, what interest you may | | | | unsubsidized loans may also be granted without a |
| pay, or what type of loans you get. | | | | credit check, although interest rates on these loans |
| Subsidized student loans are the best type of loan to | | | | may be higher. |
| get. These loans do not have to be repaid until you | | | | The best way to tell if a loan is unsubsidized or |
| graduate school. Additionally, you do not pay any | | | | subsidized is how much you can borrow. There is a |
| interest until you have graduated-the government | | | | fairly strict cap on how much you can borrow per |
| pays it for you. | | | | year in subsidized loans. As a result, most people end |
| All of your student loans will likely come with an | | | | up with a combination of the two loan types. This is |
| agreement that as long as you are in school you do | | | | where the confusion usually comes in. However, if |
| not have to make payments. However, not all of | | | | you know these facts about subsidized student loans |
| these are subsidized loans. Many of these loans are | | | | you will have a fairly good understanding of the |
| unsubsidized loans placed on an academic deferment. | | | | breakdown of your student loan debt. |
| With these loans you rack up interest even while you | | | | |