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

April 26, 2017Federal loan Stafford Subsidized Unsubsidized

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

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For the need-based Subsidized Stafford Loan, the federal government pays the interest while you are enrolled at least half-time (six semester hours). However, for the non need based Unsubsidized Stafford Loan, interest does accrue while the student is enrolled and must be paid by the student upon graduation or ceasing enrollment of half time status. Both types of Stafford loans have an interest rate that is capped at 8.25%. Repayment begins six months after you graduate or you cease to be enrolled at least half-time (six semester hours).