The best answer that describes an unsubsidized federal loan is A. You are responsible for paying all the interest that accumulates on your loan. Both subsidized and unsubsidized loans refer to the money that you get from the government in order to cover your school, or university costs that are usually very high. Usually, the terms are slightly better when it comes to subsidized loans, but if you can't choose - either is good. You will start paying your loans 6 months after you graduate or drop out.