 TITLE: What Is an Unsubsidized Student Loan? CONTENT: Pros and Cons of Unsubsidized Loans\n-----------------------------------\nUnsubsidized loans have several benefits and drawbacks to consider before you take one on.\nUnsubsidized student loan perks include:\n*   You aren't required to demonstrate financial need. This can be helpful in many situations, such as when you've reached your borrowing limit on need-based subsidized loans and still don't have enough to fully cover school costs.\n*   Unlike subsidized loans, you can utilize these loans if you're a graduate or professional student.\n*   You can borrow more money than with a subsidized loan.\n*   Unlike private loans, you can choose from multiple federal repayment plans, giving you more flexibility.\n*   Additionally, while private loans require credit checks, unsubsidized federal loans (and subsidized federal loans) don't check credit.\nBut there are some downsides to consider:\n*   Interest starts accruing immediately. If you or your parents can't make interest payments while you're in school, that accrued interest is added to your loan's principal, which increases the cost of borrowing. For that reason, you should try to pay all the interest on these loans before you leave school.\n*   There are annual limits on how much you can borrow through federal loans—both subsidized and unsubsidized—so you may not be able to borrow as much as you need. In this case, you may be able to supplement with private loans. END