Both loans are offered by the U.S. Department of Education to help eligible students cover the cost of furthering their education. Below is a brief explanation of the differences. For more detailed information visit studentaid.gov.
These loans have the benefit of interest being paid for while the student is in college, or the loan is in deferment. The U.S. Department of Education pays this interest if:
These loans start accruing interest as soon as they're taken out. This means the student is responsible for paying the interest during all periods. If the interest isn't paid for, it will accrue and be added to the principal balance.