• Lisa Ericson

What does it mean that my student loans are subsidized?

Basically it means that the government pays the interest on your subsidized student loans, while you're in school (and sometimes even afterwards...)


K. from North Carolina, $12.2K in student loans debt

K. is a Junior in one of the leading colleges in North Carolina. When checking his debt status using MoneyCompass he found out that some of his loans are called "subsidized" while some are "Unsubsidized". As explained in the Federal Student Aid website, the US department of education pays the interest on your subsidized loans in the following cases:

  1. When you're enrolled for at least half-time

  2. In the "grace period" which is 6 months after you leave school

  3. During deferment period

K. is on the right path to financial health, how about you?


Want to become debt free faster? Money Compass allows you to easily find the best repayment plan to fit your goals. Click here to give it a try


Have a specific question regarding your loans? Send it to FreeAdvice@moneycompass.io

#studentloans #studentdebt #repaymentplans

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