The Subsidized Loan is a need-based loan that is interest free while you’re enrolled in school at least half-time (minimum of 6 credits) and during your grace and deferment periods.
The Unsubsidized loan begins to accumulate interest from the date of your first loan disbursement. You can choose pay the interest while you are in school and during grace, deferment or forbearance periods, or you can allow interest to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, the total amount you have to repay will increase because you will be charged interest on a higher principal amount.
Parents of dependent students may apply for a Federal Direct PLUS Loan to help pay their child’s education expenses as long as certain eligibility requirements are met. Graduate and professional students may also apply for a PLUS Loan to cover their tuition, fees and expenses.
Additional information about Federal Direct Stafford and Plus loans can be found at: https://studentaid.ed.gov/sa/types/loans.