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What is the difference between a subsidized Federal Direct Loan and an unsubsidized Federal Direct Loan?

April 26, 2017difference Federal loan Subsidized Unsubsidized

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What is the difference between a subsidized Federal Direct Loan and an unsubsidized Federal Direct Loan?

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A. If you file the FAFSA and demonstrate the need for a loan, you will be awarded the subsidized Federal Direct Loan and the federal government will pay the interest on the loan for you as long as you are enrolled in a post secondary school at least half-time. If you do not demonstrate financial need for a loan, you will be offered an unsubsidized Federal Direct Loan. In this case, the interest begins accruing at the time your loan is disbursed and you bear the responsibility of repaying all interest.