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What is the difference between the Subsidized and Unsubsidized Federal Stafford Loan?

April 26, 2017difference Federal loan Stafford Subsidized Unsubsidized

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What is the difference between the Subsidized and Unsubsidized Federal Stafford Loan?

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With the Subsidized Federal Stafford, the interest is paid by the government while you are in school. The interest on the Unsubsidized Federal Stafford is not paid by the government while you are in school. You have the option of paying the interest or deferring it until after you graduate at which time it will be added to the principle of the loan.