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

April 26, 2017difference loan Subsidized Unsubsidized

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

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The subsidized loan is awarded to eligible students based on need, and interest does NOT accrue on the principal of your loan while you are enrolled in school at least half-time. The unsubsidized Direct loan is not based on need, and interest accrues on the principal of your loan from disbursement.