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What is the difference between the Subsidized Stafford loan and Unsubsidized Stafford loan?

April 26, 2017loan Stafford Subsidized Unsubsidized

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What is the difference between the Subsidized Stafford loan and Unsubsidized Stafford loan?

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Essentially these two loans are the same, however the Subsidized Federal Stafford Loan’s interest is paid by the government while a student is in school at a rate of half-time or greater and therefore does not accrue interest for the student while in school. The Unsubsidized Loan does accrue interest while in school and you, as the student, can choose to pay the interest while in school (so it does not compound) or defer all payments until out of school.