Direct Subsidized Loans are for students with financial need. The amount you can borrow is based on your dependency status, the number of credit hours you have completed and the amount of financial need you have as based on the Free Application for Federal Student Aid (FAFSA). You are not charged interest, on this loan, while you’re in school at least half-time.
Direct Unsubsidized Loans are for students who do not have demonstrated financial need. However; the federal government does require students to complete the Free Application for Federal Student Aid (FAFSA). Like subsidized loans, the University of Mary Washington determines the amount you can borrow based on your dependency status and the number of credit hours you have completed. Interest accrues on the unsubsidized 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 (that is, added to the principal amount of your 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.