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Which loan should you pay off first unsubsidized or subsidized?
Wiki User
∙ 12y ago
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.
Wiki User
∙ 12y ago
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What is the highest interest rate on a Direct Subsidized or unsubsidized loan?
From the first disbursement of the loan
An unsubsidized loan is always more expensive than a subsidized loan?
YES! Because interest accrues on an unsubsidized loan during periods when it doesn't accrue on a subsidized loan, the total cost of an unsubsidized loan is always greater than that for a subsidized loan of the same amount.
An unsubsidized loan is always more expensive than a subsidized loan of the same amount?
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If loan is unsubsidized interest is paid by the federal government while you are in school in grace and during periods of deferment?
you are thinking of a subsidized loan. If unsubsidized, the interest acrues at all times.
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.
Is it better to get one loan each year or one big loan at the start of your education?
First try and get a Pell grant which you do not have to payoff, then u can get a subsidized or an unsubsidized loan from Direct Loan if youre in the USA. Depending on whether it is an unsubsidized loan it really doesnt matter.. If you must pay interest on the loans while in college then get it over time but if there is no interest while attending cumulative credits then it is your choice...
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.
What is a dlunst loan?
unsubsidized loan.
What is sub and unsub on college loans?
Subsidized and unsubsidized is what the terms "sub" and "unsub" mean on college loan applications.Specifically, the terms describe the underlying reason for the loan. For example, the subsidized loan draws on federal money that is set aside for financially needy students. It is based on need and therefore has self-imposed limits depending upon the difference between the student's own resources or scholarship coverage and the total educational costs to be covered. In contrast, the unsubsidized loan is made available to students who are not applying because of financial need.
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.
If you borrow an Loan you are responsible for interest that accrues while you are in school?
In the US, you only accrue interest on the unsubsidized stafford loans that you receive, the subsidized stafford loans do not accrue interest while in school.
