A Direct Unsubsidized Loan is a federal student loan available to undergraduate and graduate students to help cover educational expenses. Unlike subsidized loans, interest on unsubsidized loans begins to accrue as soon as the loan is disbursed, meaning borrowers are responsible for paying the interest during school and after graduation. These loans do not require a demonstration of financial need, making them accessible to a wider range of students. Borrowers can take out a maximum amount each academic year, depending on their level of study and dependency status, and repayment typically begins six months after graduation or when the student drops below half-time enrollment.