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Direct Unsubsidized: Unlike Subsidized loans, these federal loans do not require students to demonstrate financial need and they are responsible for paying interest on the loan during all periods. If the student chooses not to pay the interest while in school, the interest will accumulate and be added to the principal.
Federal student loan interest rates are fixed for the life of the loan; however, the rates for new loans will change annually, based on the current market. The interest rates for the 2013–2014 academic year are as follows: 3.86% for undergraduate Stafford Loans (both subsidized and unsubsidized) 5.41% for graduate Stafford Loans [6]
Direct Unsubsidized Loan. $5,500 to $20,500 per year, depending on year in school and dependency status. ... Need-based aid includes federal grants and Direct Subsidized Loans.
Aid for these students is primarily loans. The William D. Ford Federal Direct Loan (Direct Loan) Program: Eligible students may borrow up to $20,500 per school year. These loans are unsubsidized; Congress has determined that subsidized loans (no interest while enrolled) are only available to undergraduates.
When you take out federal student loans to pay for school, you may be considering subsidized versus unsubsidized loans. Subsidized vs. Unsubsidized Loans: Which Is Better for College Borrowing ...
Eligible loans. Direct Subsidized Loans. Direct Unsubsidized Loans. Direct PLUS Loans made to graduate or professional students. Direct Consolidation Loans that did not repay any PLUS loans made ...
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