After the grace period, interest accumulates at a variable rate of up to 8.25 percent. Unsubsidized Federal Stafford Loan - The terms of the unsubsidized Federal Stafford Loan are identical to those of the subsidized Federal Stafford Loan with two exceptions. A student is not required to show need for the unsubsidized Federal Stafford Loan, and interest is the student's responsibility from the beginning. The government does not pay interest for the student. Subsidized loan eligibility reduces available unsubsidized limits.
Maximum eligibility is total cost of education minus financial aid.
Interest is the parent's responsibility, and is calculated at a variable rate that cannot exceed 9 percent.