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Whats the difference between subsidized and unsubsidized Stafford Loans?

April 26, 2017Loans Stafford Subsidized Unsubsidized

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Whats the difference between subsidized and unsubsidized Stafford Loans?

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Student Loan options are more diverse than these two programs. However, these two are the most widely used student loan options. A Subsidized Stafford Loan is awarded on the basis of need. It is a low interest rate loan with no interest accruing while in college. An Unsubsidized Stafford Loan is not awarded on the basis of need. This loan accrues interest from the time of disbursement. We encourage students to pay the interest on this loan; however, it is not required.