What is the difference in a Sally Mae subsidized loan and an unsubsidized student loan?

A subsidized loan is based on financial need. If you have the financial need for the student loan based on the calculation results from your FAFSA, then the loan will be subsidized. This means that the federal government will cover the interest on the loan while you are in school at least 6 units, during your six month grace period after graduating or dropping under 6 units, and during any deferment or forbearance periods.

If you do not have the financial need for a student loan based on your FAFSA calculations but you would still like to take out a federal student loan, the loan will have to be unsubsidized. This means that the loan will continue to accumulate interest at your expense from the date the loan is disbursed to you until it is paid off. Thus, this loan will cost you more in the long run, so try to keep to subsidized loans only if at all possible.

That is the ONLY difference! You still don't have to pay as long as you are in school at least 6 units and you still get a 6 month grace period after you graduate or stop attending at least 6 units. Also, the deferment and forbearance rights are all the same whether the loan is subsidized or unsubsidized, so all of the answers you've gotten so far are incorrect.

If you need any other clarification, please speak with a Financial Aid Assistant at your college's financial aid office, preferrable a loan specialist to make sure you are getting all the information you need and understanding fully your rights and responsibilities as a student loan borrower.

What is the difference in a Sally Mae subsidized loan and an unsubsidized student loan?

unsubsidized loans accrue interest from the time you take them out and all the time you're in school.

Subsidized loans don't accrue interest while you're in school and you have a six month grace period after graduation.

What is the difference in a Sally Mae subsidized loan and an unsubsidized student loan?

Sallie Mae explains it on their website, in the right-hand column: http://www.salliemae.com/get_student_loa...

What is the difference in a Sally Mae subsidized loan and an unsubsidized student loan?

always take subsidized when possible. They don't pile up interest until you are out of school and have much better deferment options once you graduate. Instead of Sallie Mae, try some of the other private student loan companies like www.astrive.com or http://www.thinkfinancial.com . These smaller companies have much better customer service in my opinion. Good Luck.