What is the difference between a Federal Stafford Loan and a Federal Unsubsidized Stafford Loan? Which should I choose?
Under federal law, you must receive all of the Federal Stafford loan you are eligible for before you may receive any Unsubsidized loan. Both loans are similar, but technically the Unsubsidized becomes due and payable while you are still in school. This repayment is automatically deferred until after you are no longer enrolled, but because some interest payments were due while you were in college, having been set aside until you are not enrolled, some interest is added to your loan making it a little more expensive than the federal Stafford loan.
