If you borrowed a total of $20,000 over a period of 4 years on a subsidized loan, you would leave college with $20,000 in debt. Unlike an unsubsidized where the money borrowed gained interest while in college. So bottom line, if you were to take out a federal loan, subsidized is the way to go, if you qualify.
Subsidized loans:
Since the interest on these loans are paid by the government while you're in college, the total amount needed to be paid off is $20,000. If you interest rate is 5% (which is common), and you decided to pay it off in 10 years; then your monthly payment is $212 a month. This, I think, if a very manageable payment plan if you get a decent job out of college.
Subsidized loans:
Since the interest on these loans are paid by the government while you're in college, the total amount needed to be paid off is $20,000. If you interest rate is 5% (which is common), and you decided to pay it off in 10 years; then your monthly payment is $212 a month. This, I think, if a very manageable payment plan if you get a decent job out of college.
. In the event that you do not qualify for subsidized loans, private bank loans are another option. The downfall is that the interests tend to be much higher than federal loans.
Bank Loans:
Since this loan, along with non subsidized, gain interest in college, so if the interest rate is 7.5%; the final amount to pay back after college is $24,209.50. With this being said, it would take 15 years to pay this money back with a monthly payment of $224.43.
Bank Loans:
Since this loan, along with non subsidized, gain interest in college, so if the interest rate is 7.5%; the final amount to pay back after college is $24,209.50. With this being said, it would take 15 years to pay this money back with a monthly payment of $224.43.
Another option is a unsubsidized federal loan. This is a mix of a bank loan and subsidized loan. The interest rate is much lower than that of a bank loan, but it does gain interest while in college. The upside to this loan is that everyone qualifies; however the college you attend will decided how much money you can borrow.
Unsubsidized Loans:
With the interest this loan gained, with an interest rate at 4.25%, throughout the four years of college, the total owed is $22,289.87.
Unsubsidized Loans:
With the interest this loan gained, with an interest rate at 4.25%, throughout the four years of college, the total owed is $22,289.87.