What is a subsidized loan?
For all subsidized federal student loans, the U.S. Department of Education subsidizes—pays the interest on—your loan while you are in school and during periods of deferment, such as during military service.
Subsidized loans are usually federal student loans. Federal subsidized loans are given to undergraduate students who demonstrate financial need. You will be notified by your school if you qualify for a subsidized loan, after you complete the Free Application for Federal Student Aid (FAFSA) . If you have already filed the FAFSA, check with your financial aid office for any additional paperwork that you must submit to obtain a federal loan.
Loan repayment start six months after you graduate, leave school, or drop below half-time enrollment status. During the six-month grace period you will receive the repayment information from your student loan servicer. If you are unable to afford your student loan payment, contact your student loan servicer right away and ask about a deferment or change to your repayment plan.