What is the difference between Subsidized/Unsubsidized Stafford and Graduate PLUS loans?
To be eligible for the Subsidized Stafford Loan, you must have demonstrated financial need to borrow a subsidized Stafford loan. The federal government pays the interest while you are enrolled in school (at least half-time) and during grace and deferment periods. The Unsubsidized Stafford Loan is not based on demonstrating financial need and the federal government does not pay the interest; you are responsible for all interest. Interest begins to accumulate immediately upon disbursement. Repayment of accrued interest will be deferred until repayment of principal is required. The Graduate PLUS loan is not based on demonstrating need and repayment begins after funds have been disbursed. There is an origination fee of 4% that is deducted from your loan proceeds. Please be aware that the Federal Graduate PLUS loan is contingent upon a credit approval and can only be certified for the amount remaining after consideration of your cost of attendance less all other financial aid awarded.
