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Subsidized and unsubsidized loans, whats the difference?

April 26, 2017Loans Subsidized Unsubsidized

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Subsidized and unsubsidized loans, whats the difference?

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With a subsidized loan, the interest that accrues is paid by the Federal Government while the borrower is in school at least half-time and during grace and deferment periods. With an unsubsidized loan, the interest is paid by the borrower, rather than the government.