An unsubsidized Direct Stafford Loan is a loan from the Department of Education for students not based on a demonstrated financial need. For an unsubsidized loan, the interest is not subsidized (paid) by the Department of Education. Instead, the interest accrues and from the point the loan is originated the student is responsible for paying the accrued interest. The student can pay the interest while in school or during a period of deferment or forbearance.
Posted in: Direct Stafford Loan