An unsubsidized loan is a type of student loan that is not based on financial need. Unlike subsidized loans, the government does not pay the interest on unsubsidized loans while the borrower is in school, during deferment periods, or during grace periods. Instead, the borrower is responsible for paying the interest from the time the loan is disbursed until it is paid in full. Here are some key features of unsubsidized loans:

• Eligibility: Eligibility for unsubsidized loans is determined by the cost of attendance minus other financial aid, such as grants or scholarships.

• Interest: Interest is charged during in-school, deferment, and grace periods.

• Loan Limits: There is an educational career borrowing limit of up to $57,500 for unsubsidized student loans for dependent undergraduates and $138,500 for graduate or professional students.

Unsubsidized loans are available to both undergraduate and graduate students. They are a good option for students who do not qualify for subsidized loans or who need to borrow more money than the subsidized loan limit allows. However, borrowers should be mindful of the interest that accumulates and compounds on top of the original loan balance, which can make the loan more expensive even before entering the repayment period.