July 2, 2021

What Is An Unsubsidized Student Loans?

Chipper Help

Unsubsidized student loans (or direct unsubsidized loans) are federal student loans you can get from the federal government. These types of loans are available to undergraduate and graduate students regardless of financial situation.

Unsubsidized student loans can be expensive because interest rates accrue immediately after disbursement. Your unsubsidized student loan’s interest will accumulate while you are in college, during the loan’s grace period, and during deferment.

Keep reading as we highlight the key details of unsubsidized student loans. We discuss how to get one, who qualifies for one, how much you can get, and how to pay off an unsubsidized student loan.

How To Get an Unsubsidized Student Loan

You must apply for a federal student loan to get an unsubsidized student loan. Getting any federal student loan begins by filling out the Free Application for Federal Student Aid (FAFSA).

Your college’s financial aid department will notify you of the federal student loans you qualify for upon FAFSA submission. They will give you a financial aid award letter, which will include the amount of aid you can get.

You must complete the necessary paperwork, which includes signing a master promissory note. This document is the loan agreement. If you are getting a federal student loan for the first time, you must attend entrance counseling. This step ensures you understand your loan’s terms and conditions.

How To Qualify for an Unsubsidized Student Loan

You must meet the following criteria to apply for an unsubsidized student loan:

  • Citizenship: You must be a U.S. citizen or permanent resident.
  • Student Status: You must be enrolled at least half-time as a regular student with good academic standing. You could be an undergraduate student or graduate student taking a degree or certificate program at an accredited school.
  • Financial: You must have no prior student loan defaults. You don’t need to demonstrate financial need to qualify for an unsubsidized student loan. These federal loans are available to students of any financial background.

How Much You Can Get From an Unsubsidized Student Loan

The amount you can borrow from the federal government depends on your school’s tuition, year in school, and dependency status. The following table summarizes the unsubsidized student loan limits:

YearDependent StudentsIndependent Students
First (Undergraduate)$5,500$9,500
Second (Undergraduate)$6,500$10,500
Third and Beyond (Undergraduate)$7,500$12,500
Total Limit (Undergraduate)$31,000$57,500
GraduateN/A$20,500
Total Limit (Graduate)N/A$138,500

How To Pay for an Unsubsidized Student Loan

You can pay for unsubsidized student loans through the following federal student loan repayment plans:

  • Standard Repayment: Fixed monthly payments for ten years
  • Graduated Repayment: Increasing payments every two years for ten years
  • Extended Repayment: Payments throughout 25 years
  • Revised Pay as You Earn: Monthly payments equal 10% of your income. The federal government may forgive unpaid loans after 20 (undergraduate students) or 25 (graduate students) years.
  • Income-Based Repayment: Monthly payments equal 10%-15% of your income. The federal government may forgive unpaid loans after 20 (undergraduate students) or 25 (graduate students) years.
  • Income-Contingent Repayment: Fixed monthly payments of less than 20% of your discretionary income for 12 years. The federal government may forgive unpaid loans after 25 years.
  • Income-Sensitive Repayment: Monthly payments based on your income for 15 years.

Conclusion: What Is an Unsubsidized Student Loan?

Unsubsidized student loans are the most accessible types of student loans. Undergraduate students and graduate students may apply for one regardless of their financial standing.

However, these loans accrue interest immediately after disbursement. Other student loan types accrue interest after leaving school.

Despite its accessibility and potentially expensive price, you can pay off unsubsidized student loans through the different federal student loan repayment plans. Be sure to select an option that you are capable of maintaining throughout the life of your loan. Consider speaking with your school’s financial aid department for advice on your situation.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

See How Much You Can Save with Round-Ups

Don't worry.
Be Chipper.
Get Started