The U.S. Department of Education offers subsidized loans to undergraduate students who have a proven financial need. These loans are interest-free for the student while they're enrolled in their college or university, and for the first 6 months after they leave. Additionally, students won't owe interest on a subsidized loan during deferment periods.
Unsubsidized loans are available to undergraduate and graduate students, whether they can demonstrate a financial need or not. Unlike subsidized loans, they charge interest while students are enrolled, during grace periods and deferment periods. Students and families who cannot demonstrate their financial need may opt for unsubsidized loans, as well as students wanting to attend graduate school.
The U.S. Department of Education offers both subsidized and unsubsidized loans to qualifying students with financial needs. The differences between these two types of loans play a role in knowing which loan you'll want to pay off first.
Since unsubsidized loans charge interest regardless of your situation and accrue more quickly over time, it makes sense to target those first, particularly the loans with the highest interest rates. Follow up by paying off any subsidized loans with high interest rates.
Once your higher interest loans are paid off, you should again target your remaining unsubsidized loans first, followed by your lower interest subsidized loans.