Stafford Loan FAQs. What’s the difference between subsidized and unsubsidized Stafford loans?

Federal Subsidized Stafford Loans: Need-based loans open to undergraduate and graduate pupils enrolled at half-time that is least. Interest will not accrue regarding the loan whilst the pupil is enrolled at half-time that is least in a degree-seeking system as well as 6 months thereafter, from which time payment of this principal and interest must start. re Payment is delayed if the student comes back to college.

Federal Unsubsidized Stafford Loans: Non-need-based loans open to undergraduate and graduate pupils enrolled at half-time that is least. Interest does accrue on the loan. Payment for the interest could be the pupil’s duty through the date the mortgage is disbursed that will be compensated or capitalized (added) to your balance that is principal of loan. Continue reading