Federal Direct Unsubsidized Loans are a type of federal student loan available to both undergraduate and graduate students. These loans do not require financial need, and interest accrues from the time the loan is disbursed until it is paid in full.

Unlike Direct Subsidized Loans, which are available to undergraduate students with financial need and where the government pays the interest while you're in school, Direct Unsubsidized Loans are available regardless of financial need and start accruing interest immediately. PLUS Loans, on the other hand, are for graduate or professional students and parents of dependent undergraduates to cover education expenses not met by other financial aid. For more details on the differences between these loans, visit our detailed comparison page.

Interest rates for federal student loans vary depending on the type of loan and the borrower's status. Direct Subsidized Loans typically have the lowest interest rates, which are the same as those for Direct Unsubsidized Loans for undergraduates. However, Direct Unsubsidized Loans for graduate and professional students have a higher interest rate. PLUS Loans have the highest interest rates among these options. The calculator below factors in the different interest rates for each year. To see how much interest you will accrue across all loan types, access our advanced loan calculator here.

There is an annual limit to how much you can borrow through Direct Unsubsidized Loans. These limits depend on your year in school and your dependency status. Additionally, certain health professions students may be eligible for increased unsubsidized loan limits due to the higher cost of their programs. To learn more about the annual maximum amounts, and estimate your limit, please visit our Annual Maximum Unsubsidized Loan Tool page.