What are the differences in the repayment options available for subsidized and unsubsidized loans?
A comparison of the repayment options for subsidized and unsubsidized loans is shown in the table below. Table 3 Comparison of Repayment Options Type of Loan Grace Period Repayment to be made Subsidized Stafford Loans (Direct & FFEL) No interest is charged during the 6-month grace period. No principal needs to be paid. U.S.Government through Direct Loan Servicing Center Unsubsidized Stafford Loans (Direct & FFEL) Interest will be charged during the 6-month grace period which can be paid later. It will be capitalized. No principal needs to be paid. The private lender that made the loan Is it possible to defer payments on Stafford loans? Yes, it is possible to defer payments on Stafford loans under certain conditions like at least half-time study at a post-secondary school or study in an approved graduate fellowship program or approved rehabilitation-training program for the disabled. If the borrower is facing economic hardship, deferment up to 3 years is available. Can payments be tempo
