Federal Unsubsidized Direct Stafford Loans are also available to students if they require additional money beyond what grants, scholarships, or subsidized loans cover. These loans will accrue interest while a student is in school. It is recommended that students pay the accruing interest while they are in school; otherwise the interest is capitalized on the loan. Capitalizing means that the interest is added to the principle amount of the loan and then interest accrues on that amount also.