A Subsidized Stafford loan is one of the two different types of Stafford Loans, along with an Unsubsidized Stafford Loan. In order to qualify for a Subsidized Stafford Loan, a student must prove financial need. A credit check is not required for qualification for a Subsidized Stafford Loan. It must be shown that both the student as well as the student’s parents cannot cover the expenses. Independent students get larger Subsidized Stafford loans than dependent students. Therefore, Subsidized Stafford Loans are based on the student’s needs. Further, according to the Subsidized Stafford Loan program, the US Department of Education covers the interest while a student is attending school on a half-time or full-time basis. Thus, since the government subsidizes the interest, interest does not accrue when a student is in school, or during the six-month grace period upon graduating, or during unemployment or in-school deferment. This is why many students prefer the Subsidized Stafford Loans. The student is responsible for paying interest after the six-month grace period after graduation or leaving the school for any reason. Various repayment schemes are available when it comes to covering Subsidized Stafford Loans. These include standard, graduated, income-based and consolidated repayment. Loan repayment may also be deferred. Financial Aid officers will give step-by-step instructions and guidance to students. To apply for a Subsidized Student Loan, a student must fill in and submit the Free Application for Federal Student Aid (FAFSA). This can easily be done online. A qualifying student can get both an Unsubsidized and Subsidized Stafford Loan simultaneously.