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For Stafford, what is the difference between the subsidized and unsubsidized loan?

April 26, 2017loan Stafford Subsidized Unsubsidized

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For Stafford, what is the difference between the subsidized and unsubsidized loan?

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While both are federal loans in the student’s name, for the subsidized Stafford, the U.S. Department of Education pays interest while the borrower is in school and during grace and deferment periods. In the case of an unsubsidized Stafford, the borrower is responsible for interest during the life of the loan; financial need is not a requirement. Repayment begins six months after graduation or the student leaves school.