Unsubsidized Federal Student Loans – The Low Down That May Shock You

Student loans are one of the essentials for college students these days. No one seems to have the cash on hand to pay out the rising costs of room, food, books and tuition. This is when the topic of Unsubsidized Federal Student Loans is bound o pop up.

Sure most students will first look for the so called "free money" that is provided in the form of scholarships, grants or bursaries or even through businesses that will partly pay for a student to get a degree in return for a commitment of future employment.

If no such "full ride" option is available then Federal government student loans are usually the next borrowing option that many students consider when looking for college money.

The Low Down On Unsubsidized Federal Student Loans

Unsubsidized federal student loans are guaranteed by the government, which makes them, appealing to lenders because of the lower risk if the borrower fails to pay. However a common misunderstanding about these loans is that the government pays your interest for you.

This is not true, the government does not pay interest for you, and rather your interest accrues during college. This means that if you borrow $ 10,000, you'll owe $ 10,000 PLUS INTEREST once you graduate.

It is important for you to understand that Unsubsidized Federal Student loans are regular student loans issued by a private lender. The lender of unsubsidized student loans is a regular for-profit establishment than intends to profit by having you pay back the loan with interest.

The good news is that because of the federal government backing these student loans do have slightly lower rates than non-federally backed loans.

Plus they have the option for you to pay the loan plus interest when they graduate or you can pay the interest while you are still in school, so diminishing your final payment on your loan when you graduate.


Unsubsidized student loans do not involve qualification on a needs basis. However you must be a student and managed at least half time in order to receive an unsubsidized student loan.

Federal student loans are not available directly through every college or university. But the school must be part of the federal aid programs that are monitored by the Federal government to be eligible for Fed student loans and programs for students.

Unsubsidized Federal Student Loans – How To Get Em

Source by Nigel Banks