Get Federal Direct Stafford/Ford Loan Federal Direct Unsubsidized ... - Direct Ed

A Federal Direct Unsubsidized Stafford Loan is awarded as a non-need-based loan after all other need- based loans, grants, scholarships and other resources are subtracted or up to the annual maximum loan limit, whichever is lower.

While unsubsidized student loans are more expensive than subsidized loans, they also have some advantages compared with private student loans, including lower interest rates and more flexible repayment options.

Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it's paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan).

A Federal Direct Unsubsidized Loan is a non-need based, low-interest loan with flexible repayment options. It is available to both undergraduate and graduate students.

The term “Stafford Loan” may refer to a subsidized or unsubsidized Federal Stafford Loan that was made to students attending schools that previously participated in the Federal Family Education Loan (FFEL) Program. No new loans have been made under the FFEL Program since July 1, 2010.

What's the difference between Direct Subsidized Loans and Direct Unsubsidized Loans? In short, Direct Subsidized Loans have slightly better terms to help out students with financial need.

Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods. Unsubsidized Loans are loans for both undergraduate and graduate students that are not based on financial need.

Stafford loans are either subsidized – the government pays the interest while you're in school – or unsubsidized – you pay all the interest, although most students will not start making these payments until after graduation.