What is the difference between a Federal Subsidized Stafford Loan and a Federal Unsubsidized Stafford Loan?

The Federal Subsidized Stafford Loan is a need based loan and interest free as long as the student is enrolled in a degree seeking program at least half-time and during grace period. The Federal Unsubsidized Stafford Loan is a non need based loan and it accrues interest based on a 6.8% fixed interest rate while the student is in school. The grace period is six months for Federal Subsidized and Unsubsidized Stafford Loans after graduation or dropping below less than half-time enrollment status.

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Refer to the following link for the eligibility, interest rate, fee, loan amount, and repayment differences between a Federal Stafford Loan and a Private Loan. More.

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