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What Are Unsubsidized Student Loans?

By Matthew Frankel, CFPUpdated Dec 13, 2024 at 10:31 AM

Key Points

  • Unsubsidized loans accrue interest immediately, unlike subsidized where gov pays interest initially.
  • Borrowers can apply for unsubsidized loans regardless of financial need, up to annual limits.
  • Unsubsidized loans require paying interest during school and grace periods, raising total debt.

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