Unsubsidized Loans are student loans that help students finance their education through college, university or graduate school. Unsubsidized loans, in comparison with subsidized loans, are loans issued directly from a lending institution to the student with no help from the government. Students who meet certain financial criteria are eligible for some financial aid from the government when taking out a student loan. In this case the government subsidizes the interest on the loan. Those who don't meet those criteria must apply for and take out an unsubsidized loan. You must pay interest on an unsubsidized loan right off the bat, whereas with a subsidized loan, there are more options about how and when interest is paid.
Subsidized loans are easier to apply for but in some cases may be difficult to maintain afterwards because you have to pay the interest on the loan without any assistance from the government. However, there are people who aren't eligible for financial assistance from the government, yet will also have trouble, financially, with a standard unsubsidized loan from a bank. That's where People Capital and the patent-pending Human Capital Score can help.
The Human Capital Score is a data-driven method for predicting a student's future potential income that uses hard data such as GPA, standardized test scores, and choice of college/major to produce a powerful and very concrete credit risk assessment for an individual student borrower. Using that assessment, People Capital's lending platform may be able to set up a student loan at a manageable rate. Meaning, even if you aren't eligible for a subsidized loan, you may still take out an unsubsidized loan at a great, competitive rate with the help of People Capital's lending platform.
Please note: July 1, 2010 all federal loans must be originated through the Federal Direct Loan Program.