Subsidized vs Unsubsidized: How Student Loans Work Now that the college bill is due, it’s time to talk about the difference between Subsidized and Unsubsidized student loans. If you filled out the FAFSA, you’re offered $5,500 in a direct loan that is often called the “Stafford Loan”, and based on needing $3,500 that may be subsidized. The difference between the original $5,500 and the portion that is subsidized is unsubsidized. To know more visit Solution Prep online or call them today. in Educationwith college-admission-counselors-