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I have worked as both a collections representative and as an employee for a student loan company. By "subsidized" or "unsubsidized" I will assume you are speaking about federal student loans. You must pay BOTH of these back. This is why they are called loans. The difference between these two types of loans is the manner in which they accrue interest at various stages of the loan's lifetime. With all federal student loans, the lender is required to offer various types of deferments and forebearances. If at any point you can't pay on your loans it is of utmost importance that you contact your lender. If you qualify economically, I suggest that you apply for a deferment, specifically an economic hardship deferment. Save at least a month's worth of pay stubs for this to see if you qualify and get the form from your lender. In the meantime, go ahead and put your loans into forbearance. Your subsidized loan does not accrue interest during deferments, grace period(s), or if you are attending a Title 4 school at least half time. It DOES accrue interest when it goes into repayment or forbearance. Your unsubsidized Stafford Loan will accrue interest from the time it is disbursed to the school until the time is paid off. IF AT ANY TIME you have unpaid accrued interest that is acquired during a deferment, forbearance, grace, etc THE UNPAID INTEREST WILL BE CAPITALIZED TO YOUR PRINCIPAL AT THE END OF THAT PERIOD. There is no penalty for paying these loans off early. So I suggest living on Ramen Noodles until you've paid those suckers off. The only way to get out of a fed student loan is to die or become 100% permaneantly disabled. Dont try getting a lawyer or filing for bankruptcy you'll just waste time and money. The only thing you'll have to show for that is all the tacked on interest after your bankruptcy forbearance is up.
The only type of financial aide that is given to you that you do not need to pay back are scholarships and/or grants. If at any point that the dept of ed or the school finds out that you have fradulantly acquired a grant (particularly a federal one) you can be expelled and forced to pay that grant back, so I do not suggest falsefying info on your fafsa to get out of your need for stafford loans. The grant will immediately go into collections if this occurs.
If you go into default on your student loans (by not paying for a period of about a year) your loans will be forwarded to a state sponsored guarantor agency. Each state has their own agency. Once the guarantor goes for a period where they cannot find, garnish, collect on, or litigate against a defaulted borrower the loan is forwarded to the dept of education or DOE. That's where I came in.
Did you know that DOE can garnish your wages (% depends on the state you live in and other garnishents you may have) and seize your tax returns?
Did you know that through treasury offset DOE can take a portion of a disability check?
Did you know they can put a lien against your property and/or seize any licenses you received as a result of your education that was funded by defaulted moneys?
Did you know that everytime a loan gets forwarded to another collection agency (or even back to the lender after rehabilitation), all interest and collection fees leftover are tacked onto the principle and THEN the agency can add a fee of up to 25% of that to the principal?
The only thing worse than a fed student loan is a private student loan offered by student lending companies. Try paying on a loan while going to school AND having it cap out at 25%.
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What is are unsubsidized loans?
The difference between subsidized and unsubsidized student loans is the interest. On subsidized loans you don't have to pay the interest and it does not build up over the life of your loans.
When are you required to pay back a FAFSA loan?
Yes, you are required to pay back federal loans that your accept after filling out the FAFSA. This includes subsidized loans, unsubsidized loans, and PLUS loans.
Is it better to get subsidized or unsubsidized loans?
Subsidized means it is need-based and therefore the govenment pays the interest while you are in school, during a six-month grace period after graduation or otherwise separating from school, and during authorized deferment. Unsubsidized is not need-based and therefore the government charges you interest starting from your first receipt of money.
What is unsubsidizes loan?
The difference between subsidized and unsubsidized student loans is the interest. On subsidized loans you don't have to pay the interest and it does not build up over the life of your loans.
Which loan should you pay off first unsubsidized or subsidized?
You should pay the unsubsidized loans first if you are still in school or on that 6 month break before they start charging you because unsubsidized loans acquire interest regardless if you are in school or not... Subsidized loans do not acquire interest (interest is paid by the govt) while you are still in school and during those 6 months they give you. If you are past this point though then they are all acquiring interest so your best bet you be to try to pay off the ones who have a higher interest rate so that you aren't donating them so much money.
How long do you have to pay off an unsubsidized loan?
It depends on how much altogether you have borrowed by the time you finish school, and the re-payment plan you choose when you go into repayment. Loan repayment terms can be from 10, 20, or 30 years (the latter only if you have a lot of loans). The difference between a subsidized and unsubsidized loan is that with an UNsubsidized loan, the interest begins accumulating right away while you are still studying, and a subsidized loan doesn't accumulate interest until after you graduate. This can make a huge difference in the overall total loan amount you will be paying back (and possibly in the length of time it takes to pay it back), as the interest of an unsubsized loan will start compounding as well. The best way to avoid this is to start paying off the interest of your unsubsidized loan while in school if you can afford it - then when you graduate, the balance of your loan will be what you actually borrowed and not higher due to compounded interest.
Are there any loans available for the unemployed to assist them getting back into college?
For going to college in the US, there are a few financial aid options. The first is the Federal Pell Grant, which is an amount of money that you DO NOT have to pay back (unless you drop your courses prematurely without good cause). For expenses beyond what the Pell Grant will pay for, the next option is the Federal Stafford loan, which comes in 2 varieties. Subsidized and unsubsidized. The difference being, the Government pays the interest that accrues on the subsidized portion while you are attending college. You are responsible for the interest that accrues on the unsubsidized portion. If there are any expenses left after those, there are other options, including private loans and gifts, but usually the combination of Pell Grants and Stafford loans will meet your needs.
Different Types of Student Loans?
There are plenty of types of student loans that are available to those looking to go to school to better their life. The most common type of student loans are loans that are borrowed from the government itself. These type of loans come in two varieties, subsidized and unsubsidized. These loans types are important to consider in that they have different meanings for how they must be paid back. The subsidized ones are given to those who are from lower income families. On these loans, the interest is paid by the government. On the unsubsidized ones, the individual must pay the interest on the loan that they are borrowing.
Unsubsidized Loans Accrue Interest?
The Federal Stafford Loan program offers both subsidized and unsubsidized loans for college students. The former does not accrue interest, meaning the student will only have to pay back the principal amount. These are need-based loans available to students from lower income families. Unsubsidized Stafford Loans are not based on financial need. These loans do accure interest over time, and the maximum anount that can be borrowed is $2,000 per year for dependent undergraduate students and $6,000 per year for independent underclassman students.
How can a student with bad credit pay for school if their financial aid was terminated?
Although you have bad credit there are still subsidized and unsubsidized government loans that are available at low interest rates. Please refer to your schools financial assistance office.
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do i have to pay money back
Do I have to pay this money back?
Do I have to pay this money back
