A Federal Direct Unsubsidized Loan is available to degree-seeking students regardless of financial need. You must be enrolled at least half time (6 semester hours) in a degree seeking program. You are responsible for the interest from the time the unsubsidized loan is disbursed until it's paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay.