Unsubsidized Federal Stafford Loan

Students who meet the eligibility requirements under section 484 of the Higher Education Amendments and who do not qualify for interest subsidies under the Stafford Loan program may borrow under the Unsubsidized Stafford Loan program. Like the Federal Subsidized Stafford Loan program, the Unsubsidized Stafford Loan is available to all eligible students, and students must complete a valid need analysis.

Unsubsidized Stafford Loans are not need based; interest accruing on the loan is not subsidized (or paid) by the federal government while the student is in school. Students must therefore pay the interest payments while in school or allow the interest to capitalize.