If grant and scholarship money is not enough to fund your college or university level education, Federal Student Loans can help fill the gap between tuition and fees and your available resources. To apply for these loans you must first fill out a FAFSA (Free Application for Federal Student Aid). You can fill out the FAFSA if you are a senior in high school looking at and applying to colleges or if you are already enrolled in an institute of higher learning. To be eligible for some student loans you must meet need-based income guidelines. All Federal Student Loans require that you are enrolled in a qualified institute that accepts Federal aid and are enrolled at least half time. There are two major categories of Federal Student Loans: subsidized and unsubsidized. If you accept a subsidized loan, you will not be charged interest on the loan while you are in school or in a period of deferment. Instead, the Federal government pays (or subsidizes) the interest during these periods. If you accept unsubsidized loans, you will be responsible for the interest from the day the loan begins until it is fully repaid. When looking at a financial aid package, select any grant or scholarship money that need not be repaid first. Then, if necessary, select subsidized loans where the interest over the life of the loan will be lower. Finally, if you still have remaining need, accept a portion or all of the offered unsubsidized loans.