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What s the difference between subsidized and unsubsidized loans?

April 26, 2017Loans Subsidized Unsubsidized

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What s the difference between subsidized and unsubsidized loans?

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A subsidized loan is the type of loan where the student makes no payments as long as they are enrolled in six credit hours. The interest and principal are deferred. An unsubsidized loan works the same way except the student is responsible for paying the interest while attending classes.