A federal student loan for which a borrower is not generally responsible for paying the interest while in an in-school, grace, or deferment period.

A student who proves great financial need may receive a subsidized loan. While the student is enrolled at least half-time, the interest will be paid not by the student but through the government. This also happens during deferment or during the post-college six-month grace period.

The maximum amount that students can receive while in an undergraduate program is $23,000. The number differs by year, but that is the lifetime total on the subsidized Stafford Loans.