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What is the difference between a Direct Subsidized Stafford Loan and an Direct Unsubsidized Stafford Loan?

April 26, 2017difference loan Stafford Subsidized Unsubsidized

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What is the difference between a Direct Subsidized Stafford Loan and an Direct Unsubsidized Stafford Loan?

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The student is not required to make any payments of principle or interest on a Direct Subsidized Stafford Loan while the student is in school. However the interest on an Direct Unsubsidized Stafford Loan is the student’s responsibility from the time the loan funds are sent to the university until it is paid in full. The student can opt to allow the interest to accumulate, however it will be added to the principal amount of the loan and increase the amount to be repaid. It is recommended that the student contact the lender to make quarterly payments on the interest.