What is sub and unsub on college loans?
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.