How are the subsidized and unsubsidized portions of the consolidation loan determined?
A. The loans that you currently have are classified as subsidized or unsubsidized Stafford loans. On subsidized Stafford loans, the Federal Government pays the interest while you are in-school, in the grace period, and in an authorized deferment. For all other loans, called unsubsidized loans, you are responsible for paying all interest that accrues on the loans.
Related Questions
- What if I have exhausted my annual Federal Direct Subsidized/Unsubsidized Loan eligibility and I still have not reached the cost of attendance? How do I secure additional loans?
- What is the main difference between a Subsidized and Unsubsidized Direct Loan?
- What is the difference between a subsidized loan and unsubsidized loan?
