What Is An Unsubsidized Loan ?

UNSUBSIDIZED STUDENT LOANS ARE A TYPE OF LOAN THAT IS NOT SUBSIDIZED BY THE FEDERAL GOVERNMENT.

                    starts accruing from the date of disbursement, and accrued interest is capitalized and added to the loan balance until repayment begins.

Interest

The borrower is himself responsible for paying all capitalized interest.

Are unsubsidized loans better?

Non-subsidized loans have lower interest rates than other loans. The rate for graduate borrowers is 5.28% and is the same rate as subsidized loans for graduate borrowers (3.73%).

Loan Limits on Unsubsidized Student Loans

Unsubsidized loans generally allow higher loan limits than subsidized loans, allowing students to borrow more money.

The amount you can borrow in student loans is usually limited. These limits depend on the type of loan you have taken.

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