Direct Unsubsidized Loan

A Direct Unsubsidized Loan is a type of federal student loan designed to help students pay for higher education. Unlike subsidized loans, interest on an unsubsidized loan begins accruing from the moment the loan is disbursed, meaning you are responsible for paying the interest during school, grace periods, or deferment unless you choose to defer interest payments. It doesn’t depend on financial need, and repayment starts after graduation or when you leave school. This loan provides a flexible way to borrow for college expenses, with the understanding that you will eventually need to repay both the principal and the interest.