A subsidized loan is awarded on the basis of financial need. Students are not charged any interest on this loan before they begin their repayment period. An unsubsidized loan is not awarded on the basis of need. The student is charged interest from the time the loan is disbursed until it is paid in full. You may defer your payment of interest on the loan, the interest will be capitalized on the principal amount of your loan.
Students can be eligible to receive both types of loan for the same enrollment period.
Interest charges are established by a federal formula, vary annually, and are capped at 8.25 percent. Students interested in loans can contact any lending institution or seek assistance from the Financial Aid Office. The Federal Parent Loan for Undergraduate Students enables parents of dependent undergraduate students to borrow funds to assist in educational expenses. With this type of loan, repayment begins 60 days after the first disbursment of this loan is received by the school. Students and parents interested in this type of loan program can contact any lending institution.