Direct Unsubsidized Loan
A Direct Unsubsidized Loan is a type of federal student loan available to undergraduate, graduate, and professional students, regardless of financial need. Unlike subsidized loans, interest begins to accrue on an unsubsidized loan as soon as it is disbursed, and the borrower is responsible for paying all the interest, even while in school or during deferment periods. These loans are part of the U.S. Department of Education's Direct Loan Program and have fixed interest rates.
Common Questions
How is a Direct Unsubsidized Loan different from a subsidized loan?
The main difference is that with a Direct Subsidized Loan, the government pays the interest while you are in school at least half-time, during the grace period, and other deferment periods, whereas with Direct Unsubsidized Loans, you are responsible for all the interest that accrues.
When does the interest on a Direct Unsubsidized Loan start accruing?
Interest on a Direct Unsubsidized Loan starts accruing as soon as the loan is disbursed, and you are responsible for paying all the interest from that point onwards.
Can graduate students apply for Direct Unsubsidized Loans?
Yes, Direct Unsubsidized Loans are available to both undergraduate and graduate students, regardless of financial need.