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Direct Unsubsidized Stafford Loans are non need-based loans and are available to eligible undergraduate and graduate students. Repayment of principal is postponed while the student is in school and during a six month grace period after the student leaves school or drops below half time status. The interest on Unsubsidized Stafford Loans while the student is in school however is the borrower’s responsibility to repay. These loans are made by a lender, such as a bank, credit union, or savings and loan association; are insured by a state or nonprofit guarantee agency; and are reinsured by the federal government. Additionally, these loans:

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