What is the difference between a subsidized and unsubsidized Ford loan?
The William D. Ford/Stafford loan program is either subsidized, which is need-based, or unsubsidized, which is not based on financial need. Both loans have the same origination fee (1.5% of the amount borrowed), a variable interest rate capped at 8.25%, and require that a FAFSA be filed. Both types of loan also have a six month grace period that begins after the last day of enrollment. Students are not required to begin paying back their loans until the end of the grace period. Subsidized Ford loans do not accrue interest until the end of the grace period. Unsubsidized Ford loans, on the other hand, accrue interest even while the student is in school. During the time they are in school, students who borrow an unsubsidized Ford loan will receive a notice every three months that will indicate the amount of interest that has accumulated and include instructions for payment. The student may choose to pay the interest at this point or let it accrue. Although students are not required to pay
Related Questions
- What if I have exhausted my annual Federal Direct Subsidized/Unsubsidized Loan eligibility and I still have not reached the cost of attendance? How do I secure additional loans?
- What is the difference between a subsidized and unsubsidized Ford loan?
- What is the difference between a subsidized loan and unsubsidized loan?
