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What are the differences between Subsidized and Unsubsidized?

April 26, 2017differences Subsidized Unsubsidized

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What are the differences between Subsidized and Unsubsidized?

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Subsidized loans are considered need-based and the government pays the interest on these loans while you are enrolled in school on at least a half-time basis. Unsubsidized loans are non-need based and interest will accrue while the student is in school. While you do not have to pay the interest on an Unsubsidized loan while enrolled, it is better if you can.