Subsidized

Subsidized loans are awarded to students who demonstrate financial need. Because the U.S. Department of Education subsidizes the interest, borrowers are not charged interest while they are enrolled in school at least half time or are in a grace or deferment period. (In the William D. Ford Federal Direct Loan Program, these loans are referred to as Subsidized Federal Direct Stafford Loans or Direct Subsidized Loans.)

For more information see the following lesson:

Fund Maintenance Setup (Packaging)


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