A subsidized loan is one that you don’t make any payments on while you are in school and that the government pays the interest on until six months after you graduate/withdraw from school. At that point you are responsible for the interest and payments.

If awarded a loan, it’s good that you received a Subsidized rather than Unsubsidized. With an Unsubsidized loan, you are responsible for interest as soon as you receive your disbursement (you may still have your loan deferred until six months after you graduate or withdraw from school, but the interest accumulates. You could make interest only payments while in school, or defer the interest payments (but still be responsible for them)).

You should talk to a financial aid officer at Rutger’s for more information/guidance. In addition, you will have to go through a Stafford Loan Entrance Interview which should explain more about your Subsidized loan. Good luck!

subsidized: you pay after you graduate. 6 months grace period after graduation.

unsubsidized: you pay while you are in school unless you request a deferrement