I have a lot of student debt as a recent graduate, and honestly, I thought my interest rate was close to 6 something than 3 something. But they make it too confusing to sort out. My interest rate IS 6%. The government subsidizes the interest down to either 3% or 0% while you are in school. However, the new laws will place the new interest rate at 14%. essentially it will soon be cheaper to put your educational expenses on a credit card than to use "subsidized" loans. This is just another bailout for the banks placed on the backs of the American student. That is all it is.
Well,subsidized loan it is need-based loan and therefore the government pays the interest while you are in school, during a six-month grace period after graduation or otherwise separating from school, and during authorized deferment.As for the interest rates, they are different in all the Universities,but if we will take for example the most popular subsidized loan,it's interest rate is 3.4%.