what is a unsubsidized student loan

An unsubsidized student loan is a type of federal student loan that is not based on financial need. With an unsubsidized loan, the borrower is responsible for the interest from the moment the loan amount is disbursed to the school. Unlike subsidized loans, the federal government does not pay the interest that accrues on unsubsidized loans. This means that interest starts accruing as soon as the loan is disbursed, and the borrower is responsible for paying the interest from that time until the loan is paid in full. Unsubsidized loans are available to both undergraduate and graduate students and are not based on financial need. The eligibility for unsubsidized loans is determined by the cost of attendance minus other financial aid, such as grants or scholarships. Unlike subsidized loans, there is no requirement to demonstrate financial need for an unsubsidized student loan, allowing students to borrow more money if needed.