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Whats the difference between unsubsidized and subsidized loans?

April 26, 2017Loans Subsidized Unsubsidized

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Whats the difference between unsubsidized and subsidized loans?

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• Subsidized loans are awarded based on financial need. You will not be charged interest before you begin repayment or during periods of deferment. The federal government “subsidizes” (or pays) the interest during these times. • Unsubsidized loans are not awarded based on financial needs. Any eligible student can take out Unsubsidized Stafford Loans. You will be charged interest from the time the loan is disbursed, to the time the loan is repaid in full.