Subsidized Student Loan

Subsidized student loans are federal student loans for students who qualify for financial aid to help cover the cost of higher education. A loan recipient must demonstrate financial need. The U.S. Department of Education pays the interest on a subsidized student loan while you’re in school at least half-time, for the first six months after you leave school (referred to as a grace period), and during a period of deferment (e.g., for graduate study, military service, etc.).