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Whats the difference between a subsidized and an unsubsidized Stafford loan?

April 26, 2017loan Stafford Subsidized Unsubsidized

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Whats the difference between a subsidized and an unsubsidized Stafford loan?

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The Federal government pays the interest on subsidized Stafford loans while the student is in deferment status. Students are responsible for the interest on unsubsidized Stafford loans. Interest payments will be deferred while the student is in deferment status, unless he or she chooses otherwise (question will be asked on the MPN).