An unsubsidized Federal Direct loan has the same terms as the subsidized Federal Direct Loan, except the borrower is responsible for the interest that accrues while in school during the six-month grace period . The unsubsidized loan is available to students who may not qualify for a subsidized loan or who may qualify for only a partial subsidized loan. Interest rates are the same as for the subsidized Federal Direct loan. Additional funding may be available through this program for independent students and dependent students whose parents' PLUS loan has been denied due to adverse credit history. Parents may borrow up to the cost of attendance, minus other aid, each academic year for each matriculated dependent enrolled in college at least half-time.
Interest begins to accumulate as of the date of the first disbursement.
Repayment begins 60 days after the final disbursement of the loan period. Student acceptance of a PLUS loan on a financial aid offer does not obligate the parent to process the loan. The PLUS loan borrower is subject to a credit check. If the PLUS loan is denied due to adverse credit history, the student may become eligible for an additional Federal Direct Unsubsidized loan.