Direct Subsidized Loans are based on financial need. Unsubsidized loans are not based on need.
Direct Subsidized Loans are available to undergraduate students with financial need and the interest is paid by the U.S. Department of Education while you’re in school at least half-time and for the first six months after you leave school. Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need. Students are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. To read more, please visit: https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized.