Unsubsidized Student Loans

unsubsidized student loansUnsubsidized Student Loans are federally guaranteed loans that are available for students who desire to pursue education, but lack the financial resources to do so. These loans are not based on financial need. Interest on the unsubsidized student loans starts to accrue as soon as the loan is disbursed to the school. These are fixed interest loans and a student is not required to start making repayments while he or she is in school. Students are not required to make interest or principal payments until 6 months after graduation. These loans can be used to pay for the total expenses of your education: tuition, housing, reading materials, and other expenses related to studies. There are several banks, credit unions, and loan companies from where students can obtain an unsubsidized student loan.

How Much Can I Borrow?

Students can borrow up to $7,000 per school year. However, the precise amount of loan depends on the status of the student’s dependency and year in school.

Why Should I Opt For an Unsubsidized Student Loan?

Although unsubsidized student loans do not offer similar benefits as the subsidized Student Loan, it can still be a good option for many students. In the case of subsidized student loans, the government pays the interest on the loan while the student is still in school. Students who do not meet the qualifications for a subsidized loan can opt for unsubsidized student loans. As the criteria for getting unsubsidized student loans are very flexible, a student can still qualify for an unsubsidized student loan even if his/her family’s annual income is too high to qualify for a subsidized loan.

 

Types of Student Loans