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What’s the difference between a Federal Subsidized Stafford Loan and a Federal Unsubsidized Stafford Loan?

April 26, 2017Federal loan Stafford Subsidized Unsubsidized

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What’s the difference between a Federal Subsidized Stafford Loan and a Federal Unsubsidized Stafford Loan?

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The Subsidized Stafford Loan is interest-free until 6 months after the student is no longer enrolled in at least 6 credits during a semester. The Government pays the interest during this time, and the loan can be deferred as long as the student is enrolled.