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What is the difference between subsidized Federal Stafford Loan and an unsubsidized Federal Stafford Loan?

April 26, 2017difference Federal loan Stafford Subsidized Unsubsidized

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What is the difference between subsidized Federal Stafford Loan and an unsubsidized Federal Stafford Loan?

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Subsidized loans are need based loans. The interest is paid by the federal government while the student is attending school at least half time (six credits). Unsubsidized loans are not need based, and the student is responsible for the interest while attending school. Students have the option to defer making the interest payments if he/she is enrolled part time.