Unsubsidized loans are a type of federal student loan that helps cover educational expenses. Unlike subsidized loans, the government does not pay the interest on unsubsidized loans while the borrower is in school or during deferment periods. This means that interest begins to accrue as soon as the loan is disbursed. Borrowers are responsible for paying the interest, which can add to the total cost of the loan over time. Unsubsidized loans are available to both undergraduate and graduate students, making them a flexible option for financing education. They are part of the William D. Ford Federal Direct Loan Program.