Unsubsidized Stafford Loans are federal Stafford Loans offered to undergraduate and graduate students, regardless of financial need. In order to apply for an unsubsidized Stafford Loan you must complete and submit the government's FAFSA (Free Application for Federal Student Aid) form.

     Unsubsidized undergraduate school loans are not awarded to students based on need. Consequently these loans require borrowers to pay any interest that accumulates on their loans while in school, during periods of deferment and during grace periods. Interest on subsidized federal student loans, on the other hand, is paid by the U.S. government during those same time periods. For both types of federal loans, borrowers are allowed to defer any payments until after they graduate. This assumes that students remain in approved programs on a half time or full time basis.