Damircudic | E+ | Getty ImagesThe looming end of a pandemic-era pause to student loan payments and interest puts a spotlight on a big difference between two types of debt: subsidized and unsubsidized loans.
How interest accrues on subsidized, unsubsidized loansDirect Subsidized Loans are available to undergraduate students who demonstrate a financial need.
About 30.7 million people have an unsubsidized loan, with an average balance of about $19,000, according to the Education Department.
(The term Stafford Loan is an informal way of referring to Direct Subsidized Loans and Direct Unsubsidized Loans made via the Direct Loan Program.
It also refers to subsidized or unsubsidized Federal Stafford Loans made via the Federal Family Education Loan, or FFEL, program.)
Persons:
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Organizations:
Stafford Loans, U.S . Department of Education, Department, Education Department, Program, Federal Stafford Loans, Federal Family Education
Locations:
Stafford