Subsidized loans and unsubsidized loans are both types of federal student loans. The main difference between the two is that the government pays the interest on subsidized loans while the student is in school and during deferment periods. For unsubsidized loans, the student is responsible for paying the interest that accrues during these times.
Subsidized loans are available to students who demonstrate financial need, while unsubsidized loans are available to all students, regardless of financial need. Both subsidized and unsubsidized loans have fixed interest rates that are set by the government.