<p>I have qualified for a subsidized stafford loan, but what exactly is the difference between a subsidized and an unsubsidized? Also, since I'm now going through the process of getting one, am I supposed to directly contact the lenders? Or what? Sorry, I really have no experience with this.</p>
<p>Subsidized Stafford - interest rate for a loan disbursed for the 2008-2009 school year 6% (it is going down yearly until 2011-2012). The govt pays the interest until you graduate or drop below half time plus a grace period of 6 months.</p>
<p>Unsubsidized Stafford the interest rate is 6.8% and you are responsible for the interest from the day the loan is disbursed.</p>