Question

Which answer best describes an unsubsidized federal loan? AYou are only responsible for the cost of the loan. BThe federal government will cover the interest accumulated on the loan while you're in school. CThe federal government will only cover the interest accumulated on the loan if you graduate and earn a degree. DYou are responsible for paying all the interest that accumulates on your loan.

Answer 1

They are loans that accrue interest over time and the person who has taken out the unsubsidized loan (generally students) are in charge of the interest that has been accrued over the years. 

When I was a student, my mom always told me to only use the subsidized loans if possible, because interest doesn't accrue on those loans while you are in school, and depending on the loan itself, you don't have to pay them back.