Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need. Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).
The Grad PLUS Loan is a federal student loan available to students attending graduate school and professional school. The Grad PLUS Loan offers a fixed 6.84% interest rate for the 2015-2016 school year and flexible loan limits. To be eligible, a student can’t have an adverse credit history. A 4.272% fee is deducted from the loan amount before the funds are sent to the school.
Private Education Loans, also known as Alternative Education Loans, help bridge the gap between the actual cost of your education and the limited amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete.