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

April 26, 2017student loan Subsidized Unsubsidized

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

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If you receive a subsidized Stafford loan, the federal government pays the interest while you are in school, during your grace period, and during some authorized periods of non-payment after you leave school. With an unsubsidized loan, you are responsible for this interest. (You may be able to defer paying the interest on an unsubsidized loan, but this interest will be added to your loan principal when you leave school or at the end of an authorized period of non-payment.

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If you receive a subsidized Stafford loan, the federal government pays the interest while you are in school, during your grace period, and during some authorized periods of non-payment after you leave school. With an unsubsidized loan, you are responsible for this interest.