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What is the difference between the Stafford subsidized and unsubsidized loan?

April 26, 2017loan Stafford Subsidized Unsubsidized

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What is the difference between the Stafford subsidized and unsubsidized loan?

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For a subsidized Stafford loan the U.S. Department of Education pays the interest while you’re in school at least half time. For an unsubsidized Stafford loan you are responsible for the interest from the time the loan is disbursed until it’s paid in full. You can pay the interest as you go along or you can allow the interest to be accrued and capitalized.