Definitions for "Unsubsidized Loans"
Keywords:  ffelp, sls, stafford, disbursed, accrue
Loans that accrue interest from the date of disbursement, interest which, if unpaid by the borrower, will be added back to the principal through a process called capitalization. Examples include Federal Unsubsidized Stafford (either FFELP or Direct), Federal SLS, Federal PLUS, Health Education Assistance Loans ( HEAL), private loans, and some institutional loans (check your promissory note or ask your medical school financial aid officer).
A loan not based on financial need, and the Federal government does not pay any interest on the loan. The borrower is responsible for all interest from the date the loan is disbursed.
When student loans are unsubsidized, borrowers are responsible to pay all accrued interest, whether accrued in school, or during grace or deferment periods, or during NIH repayment contract periods. Examples include Federal Unsubsidized Stafford (either FFELP or Direct), Federal SLS, Federal PLUS, Health Education Assistance Loans (HEAL), private loans, and some institutional loans. See “Capitalization.