What is the difference between subsidized and unsubsidized Stafford Loan money?
There are two types of Federal Stafford Loan: subsidized and unsubsidized. With a subsidized loan, the government pays the interest on the loan while you are in school. The subsidized amount is based on need and not every student qualifies for it. An unsubsidized loan accrues interest while you are in school. You have the option of paying the interest on this loan while you are in school or deferring the interest until after you graduate, at which time that amount will be added to the principle of the loan. The Student Financial Services Office will tell you in your award letter how much you qualify for in subsidized and unsubsidized loans.
