What are the differences between subsidized and unsubsidized student loans?

Subsidized and unsubsidized student loans are two different types of loans used to help finance a college education and other educational expenses in Tennessee. Subsidized loans are loans that are provided by the federal government and have lower interest rates than most other types of loans. The federal government pays the interest on these loans while the student is in school and for a period of grace after completion of the program. These loans are based on financial need, and the amount of money available is limited. Unsubsidized loans are loans that do not require financial need. These loans are not administered by the federal government, but often by private lenders. Interest rates are typically higher than subsidized loans and the student is responsible for paying all of the interest. Interest accumulates while the student is in school and must be paid. The main differences between subsidized and unsubsidized student loans are the interest rates, eligibility, and who is responsible for paying interest while the student is in school. Subsidized student loans generally have lower interest rates and require the student to demonstrate financial need. The federal government is responsible for paying the student’s interest while they are in school. Unsubsidized student loans have higher interest rates and do not require the student to demonstrate financial need. The student is responsible for paying all of the interest while they are in school.

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What are the differences between subsidized and unsubsidized student loans?

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