What’s the Difference Between Subsidized and Unsubsidized Loans?
When it comes to loans, there are two main types – subsidized and unsubsidized. In general, subsidized loans are those that receive financial assistance from the government. Unsubsidized loans, on the other hand, are not eligible for this type of assistance.
The main difference between the two types of loans is that subsidized loans are typically cheaper. This is because the government is investing money in the loan, which makes it cheaper for the borrower. Furthermore, subsidized loans are typically longer-term, which makes them more viable for some borrowers.
Unsubsidized loans are not always cheaper, and they may not be as long-term. This is because the government is not investing any money in the loan, so the cost of the loan is typically higher. Additionally, unsubsidized loans are typically not as viable for some borrowers. This is because they are not as flexible, which can make it difficult to repay the loan.