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What is the difference between subsidized and unsubsidized loans?

What is the difference between unsubsidized and subsidized student loans?

  • Answer:

    Subsidized loans are awarded on the basis of financial need. You won't be charged any interest before you begin repaying the loan because the federal government subsidizes the interest during this time. Unsubsidized loans charge interest from the time the money is first disbursed until it is paid in full.

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Subsidized loans are awarded on the basis of financial need. You won't be charged any interest before you begin repaying the loan because the federal government subsidizes the interest during this time. Unsubsidized loans charge interest from the time the money is first disbursed until it is paid in full.

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