Stafford Loan (subsidized) Questions

Paying for College
1

<p>I finally got my financial aid package reconsidered for this year. Let's just say my university was a bit more generous this time by giving me work/study and a subsidized Stafford Loan and an increase in my grants.</p>

<p>I just have a few questions:</p>

<ul>
<li><p>What is the difference between SUBSIDIZED and UNSUBSIDIZED Stafford Loans?</p></li>
<li><p>Is the current interest rate for the Stafford Loan 8.25%? Do students who have a subsidized Stafford Loan have to pay the interest?</p></li>
</ul>

<p>-What is your experience with these lenders: which ones should I choose? CitiBank, College Board, U.S. Bank, Access Group, Sallie Mae Education Trust, and edamerica?</p>

2

<p>subsidized- government pays interest while you are in school- it is not added to the total that you owe
unsubsidized- interest is added to total that you owe
the maximum interest rate that it could go up to would be 8.25% I beleive the current interest rate is around 5%</p>

<p>I can't really advise on lenders</p>