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

April 26, 2017difference Federal loan Stafford Subsidized Unsubsidized

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

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A. Subsidized means the government pays the interest that accrues on your loan while you are in school, for the first six months after you leave school and if you qualify to have your payments deferred. The government approves subsidized loans based on financial need. Unsubsidized means you are responsible for paying all interest that accrues. You can receive both subsidized and unsubsidized loans for the same enrollment period as long as you don’t exceed the annual loan limits.