Federal Family Education Loan (FFEL) Stafford Loans are either subsidized or unsubsidized.

A subsidized loan is awarded on the basis of financial need and the federal government “subsidizes” the interest during your enrollment period.

An unsubsidized loan is not awarded on the basis of need. The student is charged interest from the time the loan is disbursed until it’s repaid in full. If interest is allowed to accrue while the student is in school or during other periods of nonpayment, it will be "capitalized"—that is, the interest will be added to the principal amount of the loan, and additional interest changed will be based on that higher amount.