If you are looking for federal loans and other forms of student aid to attend school, you my have heard of Subsidized Federal Loans or Unubsidized Stafford Loans. People often wonder what is the difference between these federal student loan programs and what are the advantages and disadvantages of each. Contained within this report are some of the basic facts you need to know about Subsidized Federal Loans or Unubsidized Stafford Loans.

What is the difference between an unsubsidized student loan and a subsidized student loan?

If you qualify for a subsidized student loan, the federal government will pay the interest on the loan while the student is still in school. Subsidized loans are awarded based on financial need.

If you need additional financing, you can get an unsubsidized loan to cover the difference. Unsubsidized loans are not based on financial need. Students will have to pay interest on an unsubsidized loan or it can be capitalized (added to the principal amount of the loan).

Who benefiits from unsubsidized loans?

Unsubsidized student loans can be combined with subsidized loans allowing a borrower to borrow the maximum amount of money for the year.

Where can I find Unsubsidized Stafford Loans?

You need to fill out the FAFSA form to see how much fedreral student loans and grants you qualify for.

When should I apply for student loans and grants?

It is best that you fill out the FAFSA form as soon as possible so that you can meet their deadlines.

ConclusionThere are many ways to fund a college education. The U.S. Federal Government provides financial assistance in the form of Stafford Unsubsidized Loans, Pell Grants, Work Study, etc. You can fill out the Free Application For Federal Student Aid (FAFSA) online at www.fafsa.ed.gov