A Federal Stafford UnSubsidized Loan is a Student Loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education.

This is a low interest loan and it comes from the U.S. Department of Education. This loan has the most characteristics as it's sister loan Federal Stafford Loan Subsidized, but there are some differences when it comes to the repayment.

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Federal Stafford Loans UnSubsidized Overview These loans are for undergraduate, graduate and professional students enrolled for at least half-time. Both Federal Direct Loans Program and Federal Family Education Loans (FFEL) Program support Federal Stafford Loans - UnSubsidized. The difference between a subsidized and unsubsidized loans shows up when it comes to repayment plans. With unsubsidized loans you don't have to pay the principal but you will be charged interest while at school. You can use unsubsidized loans to supplement your subsidized loans. The lender in this case is a private investor or a private institution. The U.S. Department of Education does not lend the money, but it acts as guarantor. The federal government guarantees to cover the loss in case of a default. How To Apply The first step when applying for Federal Stafford Loan is to submit your FAFSA Application. The easiest way is to use the Apply page under Student Loans. Student may also contact their respective colleges for Federal Stafford Loans. Eligibility Stafford Loans UnSubsidized are for Undergraduates, Graduates and Professional Study students. Credit history is required and will be checked for this type of loan. You must be enrolled as at least half-time student to be eligible for this loan. You do not need to present any financial need at all in order to qualify for UnSubsidized Stafford Loans. Award Amounts The award amounts depend on grade level at school and dependency status. Here we present loan limits for the First Academic Year: Award Amounts   Dependent Undergraduate Student - $2500   Independent Undergraduate Student - $6000   Graduate and Professional Study Student - $12000 Interest Rates You are responsible for paying interest on unsubsidized loans that accrues on the loan from the time the loan is disbursed until it's paid in full. You can pay the interest while you are in school or during a period of deferment or forbearance, or you can simply allow the interest to accumulate and have the interest added to the principal amount of your loan. The rate for Undergraduate Students is fixed at 6.8% For Graduate Students the rate is also fixed at 6.8% percent. Repayment Options The repayment is made to the private institution or private bank that borrowed the money. While at school you only have to pay the interest, but you do not have to pay the principal. Students have between 10 to 25 years to repay, depending on the amount owned and type of repayment plan the selected. You will receive more information about your repayment choices when you leave school, or during your grace period. Your lender will send you all required information about the repayment and they will notify you about the date the repayment begins. Please note, you are responsible for beginning repayment on time even if you did not receive any information from the lender.

In general your school will disburse your loan in at least two installments with certain exceptions.

No installment will be greater than half the amount of your loan. If case you are a first year Undergraduate Student and a first time borrowers, your first disbursement can not be made until 30 days after the first day of your enrollment date.

If you are a first time borrower you must complete entrance counseling before you receive your loan disbursement.

Student Loan Tips

Q:  Take Out Student Loans As The Last Resort
When you try to get all types of Financial Aid and you do not receive anything or if the amount of money is not enough try borrowing money by taking out loans.

Q:  Loan Cancellation Is Possible.
If you changed your mind and you decided you don't want or need a given loan you can cancel it, right before money is disbursed.

Q:  Apply For Student Loans On the Same Day
We are not sure if this tip is valid, but if you have to apply for more than one student loan (different banks) do it on the same day. This will prevent the second bank to see your first loan on the credit history and it will be easier to get qualified.

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Important Questions

Q:  When do I pay back my Stafford Loans?
After you graduate, leave school, or drop below half-time enrollment, you will have a six-month "grace period" before you begin repayment. During this period, you'll receive repayment information, and you'll be notified of your first payment due date. You're responsible for beginning repayment on time, even if you don't receive this information. Payments are usually due monthly.

Q:  Will I get cash from the Federal Stafford Loan?
This is possible. The money from the loan is used to pay for tuition, fees, room, and board first. If funds remain, you will receive them by check or in cash. You may also give your school a written permission to hold the funds until later in the enrollment period.

Q:  Is credit history required for Federal Stafford UnSubsidized Loan?
Yes, good credit history is not required for this loan.

Q:  Are there any other fees for Federal Stafford Loan?
There could be. There is a loan origination fee of 2.0 percent.

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When applying for Student Loans this is the second best loan possible. Federal Stafford Loan UnSubsidized has very low interest rates and good repayment options. The loan comes from a federal program, but is the money is lend by a private bank. Credit History is required for this loan.