Subsidized loans are a type of financial aid designed to help students pay for their education. These loans are offered by the government, and the key feature is that the interest does not accrue while the student is enrolled in school at least half-time. This means that students can focus on their studies without worrying about accumulating debt during their education. To qualify for subsidized loans, students must demonstrate financial need through the Free Application for Federal Student Aid (FAFSA). These loans are typically available to undergraduate students, making them a valuable resource for those seeking to minimize their education costs.