Student Loans : How to Compare Unsubsidized vs. Subsidized Student Loans

Unsubsidized loans and subsidized loans differ on the point of interest, as an unsubsidized loan interest begins accruing the day it is borrowed and a subsidized loan interest does not begin to accrue until separate from full-time school. Compare these two types of loans with financial advice from a guidance counselor in this free video on student loans.

Expert: Cheri Ashwood
Contact: www.wearehdtv.com
Bio: Cheri Ashwood has a bachelor's degree in psychology and education, and has been a guidance counselor for nearly a decade.
Filmmaker: Christopher Rokosz

Category:

Howto & Style

Tags:

• loans
• finance
• student loans
• college financing
• credit scores
• debt
• loan interest
• student financial aid

[Illmatic662]

@lccsmdesiree The thing is though, with a private loan they can default on your loan if you take late too pay them.

Also one missed payment and your interest will go up right away. According to what I have read, with federal loans it takes a MUCH longer time for your interest to increase if you do not pay. I think its a couple of months, also with private loans they get collections and everything involved.

[lccsmdesiree]

You are better off getting a personal low interest rate loan, or deferred payment plan, or grants and scholarships (that you do not have to pay back). FEDERAL STUDENT LOAN is the new ass't aide THAT YOU WILL HAVE TO PAY BACK, It takes you 10+ Yrs and minimum monthly balances start at $300/or+ per month to pay. Why? Each semester has separated loan accounts with various rates. Rate ranges from 4% to 8%. You be stuck for 16 individual loans at 4 yr college, and this will effect your credit score.

[speechless00]

what the name of the money that you don't have to pay---- grant?

[EpicSince2o1o]

If I were to take out subsidized loan, and I were to take out subsidized loans while earning my BA, and then I go on to medical school right after earning my BA, when would I have to start worrying about building interests?

[heartlessvietboy]

I have read and understood subsidized and unsubsidized three times and still can't answer the question what is the difference between subsidized and unsubsidized. (LOL)