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What is the difference in a Federal Subsidized Stafford Loan and a Federal Unsubsidized Stafford Loan?

April 26, 2017difference Federal loan Stafford Subsidized Unsubsidized

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What is the difference in a Federal Subsidized Stafford Loan and a Federal Unsubsidized Stafford Loan?

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A Federal Subsidized Stafford Loan is a loan where the U.S. Department of Education pays the monthly interest installments while students are in school. A Federal Unsubsidized Stafford Loan is a loan where the students are responsible for paying the monthly interest payments or have the interest capitalize on the principal of the loan.