What is an Unsubsidized Loan?

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UNSUBSIDIZED

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.

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Article ID: 3424
Created
Thu 2/17/22 12:12 PM
Modified
Thu 2/17/22 12:12 PM