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LLC, all rights reserved.
SUBSIDIZED STUDENT LOANS
According to my dictionary, to subsidize is to furnish with a grant or gift of money. And don’t we all wish we had a nice subsidy?
Subsidized student loans have a grant of money equal to the interest due on the loan. The subsidy only comes into play when the student loans are in deferment. If the student is enrolled in school at least half time at an accredited post-secondary school, the government pays the interest on the loans. In practical terms, this means the $23,000 you borrowed over the course of your education is still only $ 23,000 when you graduate. All of the interest due on those loans over the past four to ten years has been paid by the government.
After you graduate and go to work, you are responsible for paying the interest and the principal on those loans. But what if you lose your job?
If you are unemployed, you may qualify for an unemployment deferment, and the government will pay the interest on your subsidized student loans. An unemployment deferment is good for six months and may be renewed for up to three years depending upon when your loans were issued.
But what if you went to work for the Peace Corps? You may qualify for an economic hardship deferment and the government will pay the interest on your subsidized student loans. An economic hardship deferment is good for one year and may be renewed for up to three years depending on when your loans were issued.
During periods of qualified deferment, the government pays the interest on subsidized student loans. For more detailed information about subsidized student loans, and the low interest rates available on them, read “Surviving Your Student Loans”.
Subsidized Student Loans:
Student Loan Topics:
Master Promissory
Note, Student Loan Deferment, Student Loan Forbearance, Student Loan Consolidation, Student Loan Discharge, Student
Loan Grace Period, Subsidized Student Loans, Unsubsidized
Student Loans, Stafford Student Loans, Perkins Student Loans, Direct Student Loans, PLUS Student Loans, William G. Ford
Student Loans, Student Loan Delinquency, Student Loan
Default, Student Loan Payment Options, Student Loan Case
Studies, Student Loan Management, Additional Reading Relating
To Student Loans, How Do I Get A Student Loan, How Do I Confirm
the Status of my Student Loans, Why Do I Owe Twice As Much As I Borrowed
On My Student Loans, Pending Changes Affecting Student Loans, Bankruptcy and Student Loans, Student Loans And Your Credit
Report, Student Loans, Gifts.
