Federal Direct Subsidized Loans
Direct Subsidized Loans are for students with financial need. The Office of Financial Aid will review the results of your Free Application for Federal Student Aid (FAFSA) and determine the amount you can borrow. You are not charged interest while you're in school at least half-time and during grace periods and deferment periods.
Federal Direct Unsubsidized Loans
You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Like subsidized loans, the Office of Financial Aid will determine the amount you can borrow. Interest accrues (accumulates) on an unsubsidized loan from the time it's first disbursed. You can pay the interest while you are in school and during grace periods and deferment and forbearance periods, or you can allow it 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, this will increase the total amount that you have to repay because you will be charged interest on a higher principal amount.