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if youre applying for financial aid to attend college in the United States at some point youll hear about subsidized and unsubsidized student loans and its really important that you understand the difference between these two types of loans because subsidized loans are definitely preferable to unsubsidized and if you get the choice you should definitely take subsidized / unsubsidized loans if you have the opportunity to choose between them the reason that subsidized loans are so much better is that with subsidized loans the government will pay your interest while youre in school at least half time so if you take at least the half the amount of credits to be full-time then the government will pay your interest while youre in school or if youre in your grace period so after you graduate and leave school you get six six months before you have to start repaying your student loans so during that time the government would pay your interest and also if you go into deferment for your lo