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What is the difference between a subsidized or unsubsidized Federal Stafford Loan?

April 26, 2017Federal loan Stafford Subsidized Unsubsidized

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What is the difference between a subsidized or unsubsidized Federal Stafford Loan?

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Subsidized Federal Stafford loans are awarded on the basis of financial need. The federal government pays the interest on these loans during in school, grace and deferment periods. Unsubsidized Federal Stafford loans are available to students regardless of financial need. Students are responsible for paying the interest that accrues on the loan from the time the loan is disbursed until it is paid in full.