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What is the difference between Stafford subsidized and unsubsidized loans?

April 26, 2017Loans Stafford Subsidized Unsubsidized

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What is the difference between Stafford subsidized and unsubsidized loans?

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The Federal government pays the interest on your loan while you are in school, during the grace period and during any periods of deferment if you have a Stafford subsidized loan. If you have a Stafford unsubsidized loan, all the interest that accrues is your responsibility to pay. You have the choice of paying the interest quarterly or allowing the interest to accumulate until you enter repayment.