The primary distinction between the two is that Direct Subsidized Loans don't charge interest to borrowers during specific deferral periods, such as when you're enrolled in school. Interest is always charged on Direct Unsubsidized Loans.
Government agencies cover the interest on subsidized Stafford loans while borrowers are enrolled in classes or have their payments deferred. The student is responsible for paying the interest on an unsubsidized Stafford loan, and any unpaid interest is added to the loan total.
A Federal Direct Unsubsidized Stafford Loan is awarded as a non-need-based loan after all other need-based loans, grants, scholarships, and other resources are subtracted or up to the annual maximum loan limit, whichever is lower.
To learn more about Subsidized and Unsubsidized loans
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