What is the difference between between subsidized and unsubsidized loans?
Subsidized Stafford loans are based on financial need, and the government pays the interest to the lender while you are in school at least half-time, as well as during any deferment periods. Unsubsidized Stafford loans, on the other hand, are not based on need, and borrowers are responsible for all interest accrued on the loan. Interest payments can be deferred until graduation and then will be capitalized and added to the principal of the loan. You also can make payments on the interest which in school by contacting your lender.
