What is the difference between a subsidized and an unsubsidized loan?
An unsubsidized loan has a higher interest rate than a subsidized loan and interest begins to accrue immediately.
A subsidized loan has a higher interest rate than an unsubsidized loan and interest begins to accrue immediately.
A subsidized loan never has to be repaid, while an unsubsidized loan must be repaid immediately.
There is little meaningful difference between subsidized and unsubsidized loans, except that the loans come from different sources.
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