Direct Unsubsidized Loan: Who Qualifies and What You Get
Learn how Direct Unsubsidized Loans work, including how interest accumulates and what it costs to access these student loans.
A Direct Unsubsidized Loan is a type of federal student loan available to help cover the costs of higher education.
Who it's for
This loan is available to all undergraduate and graduate students. Unlike some other forms of aid, you can qualify regardless of your financial need.
What you get
You receive funds to help pay for your education. However, it is important to know that interest begins to accrue on these loans from the very day the funds are sent to your school.
What it costs you
There is an origination fee that is taken directly from each loan disbursement. This means the amount you actually receive will be slightly less than the total amount you borrowed.
The catch to know
Because interest starts building immediately, the total amount you owe can grow quickly. If you do not pay off the interest while you are still in school, that unpaid interest is added to your principal balance, meaning you will eventually pay interest on top of interest.
How to apply
- Complete the official application for federal student aid.
- Submit your application to your school's financial aid office.
- Review your loan offer and accept the amount you need.