Subsidized:

This loan, subsidized by the federal government, is available to students who demonstrate financial need as determined by federal eligibility criteria. Students may receive up to $8,500 per year, with an aggregate maximum of $65,500. Interest rates while in school are the bond-equivalent rate for the 91-day T-bill plus 1.70 percent, not to exceed 8.25 percent. In repayment, interest rates are the bond-equivalent rate for the 91-day T-bill plus 2.30 percent, not to exceed 8.25 percent. The federal government pays the interest while the borrower is in school and during authorized deferment and grace periods. Interest begins to accrue 6 months after graduation, withdrawal, or less than half-time enrollment.

Unsubsidized:

This government loan is guaranteed to students who either do not qualify for, or who have financial need in addition to, the subsidized Federal Stafford Loan. A combination of subsidized and unsubsidized Federal Stafford Loans cannot exceed $18,500 per year. The aggregate maximum for unsubsidized Federal Stafford Loans is $138,500 (less the subsidized amounts). Interest rates are identical to those for subsidized Federal Stafford Loans but interest begins to accrue on the date the funds are distributed. However, interest may be deferred and added to the principal at repayment.