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

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

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The subsidized Stafford Student Loan is a loan that the government pays the interest on while you are in an in-school status. An unsubsidized Stafford Student Loan does not qualify for a federal interest subsidy and therefore the interest will start to accrue on the loan immediately. As an undergraduate student you must maintain six credit hours and complete each semester to keep a loan in good standing. As a graduate student you must maintain five credit hours each semester (three hours for summer) to keep a loan in good standing.

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