Is subsidy good?

I've heard subsidy publications are bad news.

I sent a query to one of them and I was asked by their literary agent to submit a manuscript (It was before I found out that it was a subsidy publication).

Recently, I got a response saying that they have reviewed it and would like to publish my book.

I don't really know what to do. Do subsidy publications publish every manuscript they receive? Or just the good ones?

I haven't checked the terms and conditions yet but I know I won't be able to afford it. For heaven's sake, I'm a 17 year old, jobless girl who studies her butt off trying to get into an engineering university.

P.S. Really need your advice.