Subsidized and Unsubsidized Federal Student Loans

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Federal Student Loans and other Student Loan topics.

What is the difference between a subsidized and unsubsidized Stafford Loan?

Subsidized and Unsubsidized Federal Student Loans

Financial need for students is determined by subtracting the expected family contribution (EFC) from the cost of attendance. The amount that remains is what you still need to cover your educational costs. Those students who demonstrate financial need are eligible to receive a subsidized Stafford student loan. This loan carries a competitive interest rate and the student is not required to make any payments while they remain in school. As long as the repayment period has not begun, the federal government will pay any interest that accrues on the loan until you begin the repayment period.



Nobody has commented on this tip yet. Be the first.


URL: (optional)


Not finding the advice and tips you need on this Student Loan Tip Site? Request a Tip Now!

Guru Spotlight
Jennifer Mathes, Ph.D.
Buy My Book