Ask Red

Welcome to Ask Red!

Welcome to 'Ask Red', University of the Incarnate Word's instant answer service, where you can get answers to a wide variety of questions you may have. Have an Admissions, Registration, Financial Assistance or other UIW-related question? Simply type your question and click Ask Red or browse the Top 10 Questions from other visitors.

To get started, Ask Red a question in a complete sentence or phrase below. For example: "How do I apply?"

Our Best Answer:
What is the difference between a Direct Subsidized Loan and a Direct Unsubsidized Loan?

Direct Subsidized vs Direct Unsubsidized

The Direct Subsidized Loan is a need-based loan, and your qualification for this loan is determined by the information reported on your FAFSA along with your grade level and degree status. “Subsidized” means that the Dept. of Education will pay the interest on this loan for you as long as you are enrolled at least half-time and/or during eligible periods of deferment. “Unsubsidized” means that they are not paying the interest on the loan for you, and the loan will accrue (gather) interest at all times, including during half-time enrollment or deferment. Both types of loans still accrue interest during periods of forbearance. An easy mnemonic for remembering the difference is that “subsidized” starts with an “s,” so “someone else” is paying the interest; “unsubsidized” starts with a “u,” so “you” pay the interest.

Are you satisfied with your answer?

Having trouble finding your answer?

Please send us an email.
powered by IntelliResponse