What is the difference between subsidized and unsubsidized loans?

If you are applying for federal student loans, and you have demonstrated financial need, you may qualify for Direct Subsidized Loans and Direct Unsubsidized Loans. Direct Subsidized loans are subsidized by the federal government for students who demonstrate the most financial need. The interest on these loans will be paid by the government until you leave college. Unsubsidized loans offer similar fixed rates and protections, but you will be responsible for paying the interest that accumulates while you are in school.

To apply for Direct Subsidized and Direct Unsubsidized loans, you must complete and submit the FAFSA application.