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 Subsidized and Unsubsidized Direct Stafford loan?

April 26, 2017loan Stafford Subsidized Unsubsidized

0

Posted

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

1 Answer

0

Posted

If you have subsidized loans you will not be charged interest while you are enrolled in school at least part time, during a grace period, or during authorized periods of deferent. Interest will begin to accrue when you enter repayment. Repayment usually begins within six months after you graduate, leave school or do not enroll at least part time, which is six semester credits. You must demonstrate financial need for this type of loan. If you have unsubsidized loans, you will be charged interest from the day the loan is disbursed until it is paid in full, including in-school, grace and deferment periods. You may chose to pay the interest during these periods or it can be capitalized – that is, the interest will be added to the principal amount of your loan and additional interest will be based on the higher amount. This type of loan is not awarded on the basis of need.