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What is the main difference between a Subsidized and Unsubsidized Direct Loan?

April 26, 2017difference loan main Subsidized Unsubsidized

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What is the main difference between a Subsidized and Unsubsidized Direct Loan?

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Interest does not accrue on a Subsidized loan as the Department of Education pays the interest on the loan while you are enrolled at least half time in a degree seeking program. Upon graduation or dropping below half time enrollment, interest will begin to accrue.