Subsidized loans:

• Are awarded on the basis of financial need
• Have no interest that  accrues on the loan during half-time enrollment and during  authorized periods of deferment
• Beginning in 2012-2013, subsidized loans have an interest rate of 3.4% for undergraduates and are not available to graduate students

Unsubsidized loans:

• Are not awarded on the basis of financial need
• Have interest that accrues during half-time enrollment and during authorized periods of deferment
• Do not require payment on interest but students will receive a quarterly statement showing the amount of interest during each quarter.  It is recommended that students pay all or at least part of their quarterly interest.
• Have an interest rate of 6.8% for both undergraduate and graduate students