what is a subsidized stafford loan

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Subsidized Stafford loans are themost desirable student loansbecause the government pays the interest on your loan while you鈥檙e in school,during the six-month grace period after school and during a period of deferment if you are having financial trouble after graduation.

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

  • The maximum amount that can be borrowed from a subsidized Stafford loan is lower than that of an unsubsidized Stafford loan: … 1.A subsidized Stafford loan is a loan extended to students according to their needs while an unsubsidized Stafford loan is a loan extended to students regardless of their needs.

  • What is a Stafford Loan?

  • Stafford loans are a type of federal student loan that are either subsidized 鈥?the government pays the interest while you’re in school 鈥?or unsubsidized 鈥?you pay all the interest. Stafford loans are either subsidized 鈥?the government pays the interest while you’re in school 鈥?or unsubsidized 鈥?you pay all the interest,…

  • What are the key elements of a subsidized Stafford Loan?

  • Other key elements of subsidized Stafford loans include: Fixed interest rate of 4.45% for undergraduate students; Not available for graduate students; Loan origination fee 1.069%; Must demonstrate financial need through FAFSA; Subsidized interest while in school; Six-month grace period; Unsubsidized Stafford Loans

  • When does repayment begin on an unsubsidized Stafford Loan?

  • Repayment on student loans generally begins shortly after graduation. An unsubsidized Stafford loan is one type of federally backed student loan, available for students attending a qualified post-secondary educational institution.

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