Sub Vs Unsub Loan
A subsidized loan is a type of federal student loan.
Sub vs unsub loan. The government sets the interest rate on direct subsidized and unsubsidized loans and there is no minimum credit score required to qualify and rates are fixed. 4 30 for graduate or professional degree loans. However the amount students can borrow is limited. The apr on unsubsidized loans for graduate and professional students is 6 08.
What is a subsidized student loan. And unlike some private student loans those rates are fixed meaning they don t change over the life of the loan. For undergraduate students subsidized and unsubsidized loans charge the same interest rate. These rates apply to loans disbursed on or after.
Unsubsidized loans that are taken out by graduate or professional students however come with higher. The current fixed apr is 2 75 for undergraduate loans. And 5 30 for plus loans.