{"id":248,"date":"2013-09-18T18:37:18","date_gmt":"2013-09-18T18:37:18","guid":{"rendered":"https:\/\/blogs.wp.missouristate.edu\/finaid\/?p=248"},"modified":"2013-09-18T18:37:18","modified_gmt":"2013-09-18T18:37:18","slug":"difference-between-loans","status":"publish","type":"post","link":"https:\/\/blogs.wp.missouristate.edu\/finaid\/2013\/09\/18\/difference-between-loans\/","title":{"rendered":"Difference between Loans"},"content":{"rendered":"<h2 id=\"what's-the-difference\">What\u2019s the difference between Direct Subsidized Loans and Direct Unsubsidized Loans?<\/h2>\n<p>In short, Direct Subsidized Loans have slightly better terms to help out students with <cite title=\"The difference between the cost of attendance (COA) at a school and your  Expected Family Contribution (EFC).  While COA varies from school to school,  your EFC does not change based on the school you attend. \">financial need<\/cite>.<\/p>\n<p>Here\u2019s a quick overview of Direct Subsidized Loans:<\/p>\n<ul>\n<li>Direct Subsidized Loans are available to undergraduate students with financial need.<\/li>\n<li>Your school determines the amount you can borrow, and the amount may not exceed your financial need.<\/li>\n<li>The U.S. Department of Education pays the interest on a Direct Subsidized Loan<\/li>\n<\/ul>\n<p>\u25cb\u00a0\u00a0\u00a0\u00a0 while you\u2019re in school at least half-time,<br \/>\n\u25cb\u00a0\u00a0\u00a0\u00a0 for the first six months after you leave school (referred to as a <cite title=\"A period of time after borrowers graduate, leave school, or drop below  half-time enrollment where they are not required to make payments on certain  federal student loans. Some federal student loans will accrue interest during  the grace period, and if the interest is unpaid, it will be added to the  principal balance of the loan when the repayment period begins.\">grace period<\/cite>*), and<br \/>\n\u25cb\u00a0\u00a0\u00a0\u00a0 during a period of <cite title=\"A postponement of payment on a loan that is allowed under certain conditions  and during which interest does not accrue on Direct Subsidized Loans,  Subsidized Federal Stafford Loans, and Federal Perkins Loans. All other  federal student loans that are deferred will continue to accrue interest. Any  unpaid interest that accrued during the deferment period may be added to the  principal balance (capitalized) of the loan(s).\">deferment<\/cite> (a postponement of loan payments).<\/p>\n<p>*Note: If you receive a Direct Subsidized Loan that is first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your <cite title=\"The total sum of money borrowed plus any interest that has been capitalized.\">principal<\/cite> balance.<\/p>\n<p id=\"quick-overview-of-direct-unsubsidized\">Here\u2019s a quick overview of Direct Unsubsidized Loans:<\/p>\n<ul>\n<li>Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.<\/li>\n<li>Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.<\/li>\n<li>You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.<\/li>\n<li>If you choose not to pay the interest while you are in school and during grace periods and deferment or <cite title=\"A period during which your monthly loan payments are temporarily suspended or  reduced. Your lender may grant you a forbearance if you are willing but  unable to make loan payments due to certain types of financial hardships.  During forbearance, principal payments are postponed but interest continues  to accrue. Unpaid interest that accrues during the forbearance will be added  to the principal balance (capitalized) of your loan(s), increasing the total  amount you owe.\">forbearance<\/cite> periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What\u2019s the difference between Direct Subsidized Loans and Direct Unsubsidized Loans? In short, Direct Subsidized Loans have slightly better terms to help out students with financial need. Here\u2019s a quick overview of Direct Subsidized Loans: Direct Subsidized Loans are available to undergraduate students with financial need. Your school determines the amount you can borrow, and [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[4,12],"tags":[20,26,31],"class_list":["post-248","post","type-post","status-publish","format-standard","category-finaid","category-studentloans","tag-financial-aid","tag-loans","tag-reminders","entry"],"_links":{"self":[{"href":"https:\/\/blogs.wp.missouristate.edu\/finaid\/wp-json\/wp\/v2\/posts\/248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.wp.missouristate.edu\/finaid\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.wp.missouristate.edu\/finaid\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.wp.missouristate.edu\/finaid\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.wp.missouristate.edu\/finaid\/wp-json\/wp\/v2\/comments?post=248"}],"version-history":[{"count":0,"href":"https:\/\/blogs.wp.missouristate.edu\/finaid\/wp-json\/wp\/v2\/posts\/248\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.wp.missouristate.edu\/finaid\/wp-json\/wp\/v2\/media?parent=248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.wp.missouristate.edu\/finaid\/wp-json\/wp\/v2\/categories?post=248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.wp.missouristate.edu\/finaid\/wp-json\/wp\/v2\/tags?post=248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}