Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

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

April 26, 2017Federal loan Stafford Subsidized Unsubsidized

0

Posted

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

2 Answers

0

Posted

The Federal Subsidized Stafford Loan is awarded on the basis of need according to federal eligibility standards. Interest on this loan does not accrue while the student remains in school at least half time. If other forms of financial aid do not meet the total costs of education, any degree-seeking U. S. citizen or permanent resident, regardless of need, can qualify for a Federal Unsubsidized Stafford Loan by simply completing the FAFSA. Interest on an unsubsidized loan accrues while the student attends college.

0

Posted

The Federal Subsidized Stafford Loan is a need based loan and interest free as long as the student is enrolled in a degree seeking program at least half-time and during grace period. The Federal Unsubsidized Stafford Loan is a non need based loan and it accrues interest based on a 6.8% fixed interest rate while the student is in school. The grace period is six months for Federal Subsidized and Unsubsidized Stafford Loans after graduation or dropping below less than half-time enrollment status.