Columbia Financial Aid and Educational Financing

What is the difference between Subsidized and Unsubsidized Loans?

Home / What is the difference between Subsidized and Unsubsidized Loans? / What is the difference between Subsidized and Unsubsidized Loans?

Interest on a Direct Subsidized Loan is paid by the U.S. Department of Education while you are in school at least half-time and during your six-month grace period after you leave school. If you are unsure about your eligibility, please contact our office.

Direct Unsubsidized Loans begin to accrue interest once the loan has disbursed to the student account.