This loan does not qualify for federal interest subsidy. In most cases the interest that accumulates on an Unsubsidized loan will be capitalized and added to the principal balance. A student who only qualifies for a portion of the Subsidized loan limit may apply for an Unsubsidized Stafford loan to cover remaining financial need up to the annual loan limit.

Unsubsidized Federal Stafford Loans indicate you must pay the interest on the loans while you are in school and until the loans are paid for during grace periods and after graduation. See similar questions...

For the need-based Subsidized Stafford Loan, the federal government pays the interest while you are enrolled at least half-time (six semester hours). However, for the non need based Unsubsidized Stafford Loan, interest does accrue while the student is enrolled and must be paid by the student upon graduation or ceasing enrollment of half time status. Both types of Stafford loans have an interest rate that is capped at 8.25%. See similar questions...

With the Federal Direct Subsidized Loan, the government pays the interest while you are in school. The interest on the Federal Direct Unsubsidized Loan is not paid while you are in school, and you have the option of paying the interest or deferring it until after you graduate at which time it will be added to the principal of the loan. top of page See similar questions...

Student borrowing eligibility is limited by need in the case of the subsidized loan, and by grade level when considering either an unsubsidized loan or a combination of subsidized and unsubsidized loan. See similar questions...

This is also a loan which must be repaid. And, because it is unsubsidized, you the borrower are responsible for the interest during the life of the loan. Federal Stafford Loans are the most common source of education loan funds, and are available to both graduate and undergraduate students. There are two types, Federal Subsidized and Federal Unsubsidized. See similar questions...

Federal Direct Unsubsidized Stafford Loan Program loan limits for dependent undergraduate students are the same as for Federal Direct Stafford Loans, less amounts borrowed through that program. See similar questions...

Subsidized loans are low-interest, need-based loans for students enrolled at least half- time. The Federal government will pay all interest on your loan until you begin repayment which starts six months after you graduate or cease to be enrolled at least half-time. Unsubsidized loans are not based on need. The program is open to all students who do not qualify for other subsidized Federal Stafford loans. You are responsible for all interest from the day the loan is originated. See similar questions...

The student is not required to make any payments of principle or interest on a Subsidized Stafford Loan while the student is in school. However the interest on an Unsubsidized Stafford Loan is the student’s responsibility from the time the loan funds are sent to the university until it is paid in full. The student can opt to allow the interest to accumulate, however it will be added to the principal amount of the loan and increase the amount to be repaid. See similar questions...

Loans that are available to students regardless of demonstrated need. The amount that can be borrowed is based on student’s class level, the school’s cost of attendance, and other financial aid the student may receive. Borrowers are responsible for all interest accrued on unsubsidized loans from the date the loan is disbursed, including the time that the student attends school and also during grace periods and any type of loan deferment. See similar questions...

Subsidized Loans are awarded based on financial need. The federal government will pay the interest while you are in school up until repayment begins after the six-month grace period. You will be responsible for making the interest payments when the loan is disbursed. You may qualify for this loan even if your family's income exceeds the guidelines. See similar questions...

Both of these loans are federal loans and are only awarded to students who meet the federal requirements. The subsidized loan is a need-based loan that the federal government pays the interest on while the student is enrolled at least half-time in an eligible degree program. The unsubsidized loan is not need-based and it begins to accrue interest when the loan is disbursed. A dependent student cannot get an additional unsubsidized loan unless the parent PLUS loan is denied by the lender. See similar questions...

Unsubsidized Loan: A Federal loan that begins accruing interest the moment it is accepted. The student may elect to pay the accruing interest while in school or have interest add to the principal loan. Subsidized Loan: Federal loan that does not begin to accrue interest to the student until after your grace period ends, or the point when you withdraw from school. Note: The federal government pays the interest on subsidized loans while the student is in school. See similar questions...

If you receive a subsidized Stafford loan, the federal government pays the interest while you are in school, during your grace period, and during some authorized periods of non-payment after you leave school. With an unsubsidized loan, you are responsible for this interest. (You may be able to defer paying the interest on an unsubsidized loan, but this interest will be added to your loan principal when you leave school or at the end of an authorized period of non-payment.) See similar questions...