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What is the difference between Subsidized Direct Loans and Unsubsidized Direct Loans?

April 26, 2017Loans Subsidized Unsubsidized

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What is the difference between Subsidized Direct Loans and Unsubsidized Direct Loans?

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Subsidized Direct Loans are based on financial need and both principal and interest are deferred until the student leaves school or goes less than half-time . Unsubsidized loans accrue interest while the student is in school but the principal is deferred.