Affordable Education for Everyone

Student Budgeting

Direct Unsubsidized Loan

The federal government offers loans to a broad base of students in order to help fund the continuity of their education beyond secondary-school in hopes of facilitating the maturation of a student’s ambitions to the point of obtaining a related career. As such, there are both subsidized and unsubsidized loans that are offered by the federal government in this context.  Direct unsubsidized student loans from the federal government are different from subsidized loans insofar as they are available to both undergraduate and graduate students. Additionally, there is absolutely no need or requirement to demonstrate financial insolvency in order to qualify for a loan in this instance. Nonetheless, similar to a subsidized student loan from the federal government, the institution that you are attending will determine the final amount that you will receive as a part of your loan terms. Lastly, a big difference with the unsubsidized loan is that interest repayment is current while you are attending school and afterward.

How To Apply

The only way to apply for a direct unsubsidized student loan from the federal government is to go online and fill out a free application. This will help you to structure a loan conducive to your educational and financial needs while also allowing the federal government to determine if you indeed qualify and the subsequent terms of the loan.

How Much Can You Borrow

As previously mentioned, the school that you are applying to will make the final determinations as to the volume of loan money that you may ascertain. Nonetheless, even though different students can qualify for different amounts of money there will always be a maximum limit, which is dependent on the location and nuances of the school in question. It is also important to recognize that some students that are financially dependent and don’t have parents that qualify for federal loans can receive special provisions in order to be entitled to additional money under the direct unsubsidized loan.

Direct Unsubsidized Loan2

Current Interest Rates

Currently, interest rates for direct unsubsidized (and subsidized) student loans from the federal government are hovering around 3.5%. A government website will provide all of the relevant information, which includes an index of interest rates to track what is or what was applicable to a preexisting or prospective loans.

Repayment Plans

Generally speaking, a borrower will have within ten years to repay an unsubsidized direct loan from the federal government (despite interest still applying while the borrower is attending school). However, there are a variety of ways or structures to choose from in-terms of paying the loan back to the government. Some plans will consider the sensitivity of income and draft a proportional repayment schedule. Meanwhile, other plans will allow for an extended repayment period that plateaus at twenty to twenty-five years.  If you deem that you are unable or are having difficulties repaying your loan the most important action to take is to make contact with the officials that helped you to facilitate the loan in the first place. Often times, it is possible to seek flexibility with the repayment schedule when it is difficult to keep pace.