Subsidized: Direct Subsidized Loans are available to undergraduate students with financial need. For a subsidized loan, the U.S. Department of Education pays the interest
○ While you’re in school at least half-time,
○ For the first six months after you leave school (referred to as a grace period*), and
○ During a period of deferment (a postponement of loan payments).
Unsubsidized: Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need. For an unsubsidized loan, you are responsible for paying the interest during all periods.
Plus Loans: Plus Loans are federal loans that graduate or professional degree students and parents of dependent undergraduate students can use to help pay for education expenses. The borrower must not have an adverse credit history.