The Direct Unsubsidized Loan is a federal loan for students. You are not required to demonstrate financial need to receive this type of loan. The financial aid office will determine the amount you can borrow. Interest is charged on this loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (added to the principal amount of the loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount. Student loans should be a LAST RESORT source of financial aid.