Subsidized loans are a type of federal student loan that is available to undergraduate and graduate students who demonstrate financial need. Unlike unsubsidized loans, subsidized loans do not accrue interest while the student is enrolled in school at least half-time, or during deferment periods. This can save students a significant amount of money over the life of the loan.
To apply for subsidized loans, students must complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to determine a student’s financial need and eligibility for federal student aid, including subsidized loans. Students can apply for the FAFSA online at StudentAid.gov.