Difference Between Subsidized And Unsubsidized Stafford Graduate Loans

The main difference between a subsidized Federal Stafford Graduate Student Loan and an unsubsidized Federal Stafford Graduate Student Loan is who pays the interest on the loan while you are attend college. With unsubsidized Federal Stafford Student loans the borrower is responsible for all of the interest that accrues on the loan while you are in school. Once you graduate, all of the deferred interest that has been accruing while you were attending school will then be added to the principle of the loan. For subsidized Federal Stafford Graduate Student Loans, the federal government will pay the interest on the loan while you attend college, and during the deferment period(s).