What is an Unsubsidized Student Loan?
An unsubsidized student loan can be awarded to all eligible applicants, regardless of their financial status. However, most students prefer subsidized loans because of their benefits. Subsidized vs unsubsidized student loan Subsidized grants are provided by the federal government, under the Department of Education. With subsidized loans, the interest payment is paid by the government while the student is still attending school until a designated amount of time. In contrast, unsubsidized loans hold the borrower responsible for all interest accrued on the loan, including grace and deferment periods. Additionally, students with these loans are required to pay interest, whether or not they attend school. Students can apply for deferments while in school, and the interest of the loan becomes part of the total balance. If approved, he or she will only start paying the interest after the grace period ends. Federal Unsubsidized Student Loans Typically, all private student loans are unsubsidize
