Sub Vs Unsub Student Loan

Subsidized Loans are loans for undergraduate students with financial need, as calculated by your cost of attendance less the expected contribution from your family and any other financial aid (like grants or scholarships). While you are enrolled in school at least half-time or during deferment periods, interest is not added to your subsidised loans.

Loans for graduate and undergraduate students that are not based on financial need are known as unsubsidized Loans. Your cost of attendance less any other forms of financial aid (like grants or scholarships) determines your eligibility. Interest is charged during in-school, deferment, and grace periods. The interest on an unsubsidized loan accrues from the time it is disbursed until it is fully repaid, unlike a subsidized loan, and is your responsibility. You have the option to either pay the interest or permit it to accrue (amount) and be capitalized (that is, added to the loan’s principal amount). Capitalizing the interest will result in you owing more money. See http://www. sfa. ufl. For more crucial information on the capitalization of interest, please visit edu/debt-management/”Debt Management & Student Loans.”

Visit for more details on student loans, program requirements, and managing repayment. govStudentAid. gov.

Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students. You are not required to show financial need to receive a Direct Unsubsidized Loan.

How Much Can I Borrow?

Your grade level and dependency status will determine the maximum amount you may borrow each academic year. For annual and total (lifetime) borrowing limits, see the graph below. Due to your anticipated family contribution or the total amount of other financial aid you are receiving, you might not be able to borrow the full annual loan amount. Examples of how your subsidized or unsubsidized award amount will be calculated are provided below. For a loan to be processed, the borrower must be eligible for a direct loan and the loan request must be for more than $200.

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. See your financial aid adviser or for more information.

Subsidized and Unsubsidized Loan Examples

Example 1:

Alberta Gator is a first year dependent undergraduate student. Her tuition is $17,600 for the fall and spring terms. In addition to her other financial aid (including grants, scholarships, and work study), Alberta’s expected family contribution (EFC) is $10,000.

Alberta is ineligible for need-based, subsidized loans because her cost of attendance is greater than her EFC and other financial aid. She is, however, eligible for an Unsubsidized Loan. The amount she would be awarded would be $5,500. Even though her cost of attendance less other financial aid is $8,600, she is only eligible for the amount of her annual loan cap ($5,500 for a dependent undergraduate first year).

Subsidized and Unsubsidized Loan Limits

Your status as a dependent borrower and your academic standing in college will determine how much you are eligible to borrow through the Federal Direct Loan Program. The charts below list the annual and total loan limits.

Undergraduate Annual Loan Limits Dependent Student Independent Student
First Year $5,500 (Up to $3,500 Sub) $9,500 (Up to $3,500 Sub)
Second Year $6,500 (Up to $4,500 Sub) $10,500 (Up to $4,500 Sub)
Third, Fourth, and Fifth Year $7,500 (Up to $5,500 Sub) $12,500 (Up to $5,500 Sub)
Undergraduate Aggregate Loan Limits $31,000 (Up to $23,000 Sub) $57,500 (Up to $23,000 Sub)
Graduate Annual Loan Limits Unsubsidized*
Graduate $20,500
Graduate Aggregate Loan Limits $138,500 (Up to $65,500 Sub)
Pharmacy* (Graduate) Annual Loan Limits $33,000
Health Professions* Annual Loan Limits $40,500
Health Professions* Aggregate Loan Limits $224,000 (Up to $65,500 Sub)

* Higher unsubsidized loan limits may be available to some professional students. Contact your adviser to determine if you are eligible.

To Apply for a Subsidized and Unsubsidized Loan:

  • Complete a FAFSA (Free Application for Federal Student Aid) at
  • To be Eligible You Must:

  • be a U.S. citizen, national or permanent resident;
  • be enrolled at least half-time;
  • not have defaulted or owe a refund to any previous aid program; and
  • maintain satisfactory academic progress.
  • To Receive Your Subsidized or Unsubsidized Loan:

  • Visit ONE.UF at http://one.uf.edu and select “Login with Gatorlink.” Login with your Gatorlink username and password. In the new window that appears, scroll to the “Financial Aid” section and select the correct award year under “View Your Summary.”
  • Scroll to Federal Direct Subsidized or Unsubsidized Loans in your aid summary at ONE.UF. Accept, reduce or decline the loan using the “Take Action” button next to the loan. Students should only borrow what they need.
  • Complete Entrance Counseling using http://StudentAid.gov
  • Complete a Master Promissory Note (MPN) using http://StudentAid.gov
  • FAQ

    Is it better to accept subsidized or unsubsidized loans?

    Despite this, it’s generally advisable to accept subsidized loans first if you decide to take out federal loans because they provide more advantages in the form of government interest payments. Conversely, with unsubsidized loans, you are responsible for paying all interest that accumulates.

    Should I pay sub or unsub loans first?

    Depending on whether you have federal student loans, they could be subsidized or unsubsidized. Since interest accrues on your unsubsidized loans during school and during your grace period, it is usually best to concentrate on them first in this situation.

    What is difference between subsidized and unsubsidized student loan?

    While you are enrolled in school at least half-time or during deferment periods, interest is not added to your subsidised loans. Loans for graduate and undergraduate students that are not based on financial need are known as unsubsidized Loans.

    What is a Subcns student loan?

    SUBCNS – Subsidized Consolidation Loan.