Unsubsidized Loan


Unsubsidized Loan

Unsubsidized Loan

An unsubsidized loan is considered to be a federal student loan for eligible college students to help with the costs of tuition, books, and living expenses at a community college, four year college, and a trade or technical school. The U.S. Department of Education can offer eligible college students access to obtaining a direct unsubsidized loan. An unsubsidized loan is available to undergraduates and graduate students and there is no requirement to demonstrating financial need. In order to apply for an unsubsidized loan, the student must complete the Free Application for Federal Student Aid (FAFSA).


There are some pros and cons that you will need to look at with regards to an unsubsidized loan. A few pros for an unsubsidized loan are you are allowed to defer any payments until after you graduate, there is a maximum of $23,000 to students upon graduation, and you can still borrow the same amount of money that you can borrow with a subsidized loan. A few cons of an unsubsidized loan are the interest on the loan is not paid by the government while you are attending school, so you will be charged interest from the moment the loan is dispersed, loan fees are deducted from each disbursement, and you can only borrow a certain amount depending on your grade in school.