Answer:
Subsidized Loan
The Federal Direct subsidized loan program is based on financial need and the borrower does not pay interest while enrolled at least half-time.
Unsubsidized Loan
The Federal Direct unsubsidized loan program is not need based, but the borrower will accrue interest while he or she continues to be enrolled at least half-time. The interest will begin to accrue with the initial disbursement. You can pay the interest while you are in school, during grace periods and deferment/forbearance periods, or you can allow it to accrue.
More information can be found on our Financial Aid page.
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