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

April 26, 2017Federal loan Stafford Subsidized Unsubsidized

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

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Subsidized Federal Stafford Loans are based on financial need and both principal and interest are deferred until the student leaves school or fall below half-time status. Unsubsidized Federal Stafford Loans accrue interest while the student is in school but the principal is deferred. Although the interest is accruing on the Unsubsidized loan, students can defer any interest payments while they are enrolled at least half-time.