Subsidized Federal Direct Loans
Subsidized Federal Direct Loans are low-interest loans made to students attending school at least half time. Loans are made by the U.S Department of Education. Students who are continuously enrolled at least half-time make no payments on the interest or the principal of this loan.
Unsubsidized Federal Direct Loans
Unsubsidized Federal Direct Loans are available to students who might not be eligible for a subsidized loan. The term unsubsidized means that payments on the interest should be made while you are enrolled. Like a Subsidized Federal Direct Loan, these loans are made by the U.S. Department of Education. Unlike Subsidized Direct, interest begins accumulating immediately.