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What is the difference between an Unsubsidized Student Loan and a Subsidized Student Loan?

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What is the difference between an Unsubsidized Student Loan and a Subsidized Student Loan?

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An unsubsidized student loan is a federal loan that begins accruing interest the moment it is accepted. The student may choose to pay the accruing interest while in school or add the interest to the principal balance of the loan. A subsidized student loan is a federal loan that does not begin to accrue interest to the student until after a grace period ends, or when the student withdraws from school.

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