What is the difference between a Subsidized (sub) Stafford Loan and an Unsubsidized (unsub) Stafford Loan?
The Federal Stafford Loan is a long-term, low-interest loan that is available to all students. For the 2008-2009 academic year, subsidized Stafford Loans will have a 6.0% fixed interest rate. Unsubsidized Stafford Loans have a 6.8% fixed interest rate. As of July 1, 2008, lending institutions can charge up to 2% for origination and default fees which are deducted from the loan by your lender before it is disbursed. Currently Stephens College’s preferred lenders do not charge any fees. The Subsidized Stafford Loan is awarded for the academic year and is based on your financial need and academic grade level. Financial need is determined by your cost of attendance minus your Estimated Family Contribution (EFC) and any other aid you will receive. The Federal government subsidizes or pays the interest on the loan while you are enrolled at least half time, in your six-month grace period or in an eligible period of deferment. Interest will be charged once you enter repayment status. The Unsub
Related Questions
- What is the difference between a Subsidized Federal Stafford Loan and an Unsubsidized Federal Stafford Loan?
- What is the difference between Federal Subsidized Stafford Loan and Federal Unsubsidized Stafford Loan?
- What is the difference between a Subsidized (sub) Stafford Loan and an Unsubsidized (unsub) Stafford Loan?
