Please see FSA Direct Subsidized and Direct Unsubsidized Loans for information regarding both types of Federal Direct Stafford Loans (loan limits, who is eligible, how to apply etc).
When packaged with financial aid based on the information provided in the FAFSA, students are sometimes offered either a Federal Direct Subsidized Stafford Loan and/or a Federal Direct Unsubsidized Stafford Loan. First-year undergraduates are eligible for loans up to $5,500. Amounts increase for subsequent years of study, with higher amounts for graduate students. The interest rates may vary based on when the loan is borrowed.
There are two types of Stafford loans:
Subsidized Stafford loan - A loan for which the government pays the interest while you are in school, during grace periods, and during any deferment periods.
Unsubsidized Stafford loan - A loan for which you are responsible for paying all the interest that accrues from the date of the first disbursement until the loan is paid in full.
For more information regarding these types specifically, please visit studentaid.gov/understand-aid/types/loans.
There are a couple of different types of additional loans students/families may choose to borrow outside of the Stafford Loan(s). These are the Parent PLUS Loan and/or a private student loan.
Parent PLUS Loans are borrowed by the parent from the federal government. A FAFSA on file is required for a Parent PLUS Loan and can be completed at studentaid.gov.
A parent of a dependent undergraduate who passes the required credit check can borrow a Federal Direct PLUS Loan. The Parent PLUS Loan credit check screens for major credit issues such as tax liens, bankruptcies, charge-offs on accounts within the last 90 days. If the parent fails the credit check, the student can borrow an additional Unsubsidized Federal Direct Student Loan in their name ($4,000/year as a freshman or sophomore, $5,000/year as a junior or senior).
Please see FSA PLUS Loans for further information. The application to apply for a PLUS Loan is linked here.