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What is sub and unsub on college loans?

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Wiki User
August 18, 2011 7:12PM

Subsidized and unsubsidized is what the terms "sub" and

"unsub" mean on college loan applications.

Specifically, the terms describe the underlying reason for the

loan. For example, the subsidized loan draws on federal money that

is set aside for financially needy students. It is based on need

and therefore has self-imposed limits depending upon the difference

between the student's own resources or scholarship coverage and the

total educational costs to be covered. In contrast, the

unsubsidized loan is made available to students who are not

applying because of financial need.

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