 TITLE: What Is a Subsidized Loan? CONTENT: Pros and Cons of Subsidized Loans\n---------------------------------\nSubsidized loans come with some great benefits:\n*   Because the federal government pays the interest during the periods noted above, subsidized loans will save you money.\n*   They offer flexible repayment options you won't find with private loans.\n*   You'll pay lower interest rates on these loans than on comparable private student loans.\nBut they also have some drawbacks you should be aware of:\n*   You're limited in how much you can borrow in subsidized loans each year and in total. Your school determines your maximum loan amount based on federal limits (see below), your financial need and your year in school. If you need more than the maximum amount, you can take out unsubsidized or private loans to cover the difference.\n*   They're only available for undergrads, so graduate students have to look elsewhere.\n*   Financial need must be demonstrated to qualify, so you may not be eligible if your parents' income (or your own, if you are not considered a dependent) is too high. END