A Subsidized Federal Stafford Loan is a loan in which the interest due on the loan is paid by the Federal Government while you are in school, during your 6-month grace period following cessation of at least half-time enrollment, and for any periods of authorized deferment after you begin repayment.

An Unsubsidized Federal Stafford Loan has all the same terms as the subsidized Federal Stafford loan including deferments, interest rates and loan limits. However, you are responsible for the interest payments while you are in school, during periods of authorized deferments and during your grace and repayment periods.