Subsidized vs Unsubsidized Federal Student Loans

Compare the features of these two Federal Direct student loans. Learn about interest, accrued interest and capitalization.
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[stephanwestrum]

Thank you for making this clear and understandable! Really appreciate your help, mom

[raeganbutterfly]

Gonna show this to my future students because I had no one to show or explain it to me.

[your_local_star]

Went through several videos until I found this one that breaks down the math. Thank you!!

[chawneej]

This was very helpful! Wish I knew this before I got my student loans!

[kylynnsmith]

Since my mom didn't want to put her on fafsa. I was looking forward to unsubsidized loans but I don't want to have to pay interest😐 afterwards.

[Bundumz]

so to my understanding, do subsidized if you don't want to pay interest

[shyne]

Thank you finna pull this loan for a new Beamer 💯

[charlesthevoice]

I wish they explained it like this to me when I was young and dumb. I would have paid the unsubsidised interest right off the bat. Ooof.

[noraokeke]

Wow! Well explained. I wish you are my teacher. Thank you ma

[tomlaureys]

Do a calculation on how much money you would have if you choose not to go to college and work for those four years instead and save every dollar that you earn in those four years and invest it. How much money will you have in 4 years at the time that your friends are graduating college? Now continue the calculation with you adding to that investment for the next 20 years while your college graduate friends are making that same payment to pay off their student loans. At the end of the entire 24 years you will see that the 42 year old college graduate just finished paying off their debt and is now ready to start investing starting with $0 accumulated so far in their life. Meanwhile the 42 year old high school graduate is a very wealthy person.

[deem]

HATE INTEREST on my loans I HATE MY LOANS. I WISH I CAN SCREAM OUT TO THE WORLD. I DONT EVEN MAKE ENOUGH MONEY TO RENT AN APARTMENT OF 600 A MONTH. I am an assistant teacher and I only make 18, 000 a year before taxes... Im so mad about it and I think about it every day.

[austinjones]

I greatly appreciated this video! Thank you, Madame!

[nzjhgfb]

Thank you College Money Mom!! Helpful and thoughtful!

[Andrew-muek]

4 years + 6 month grace period is actually not 1550. 4 years = 1460 and 6 month = 180

[binabutternborajelly]

so my school is offering me $41, 000 which cuts my cost down to $13, 000 per year and I am terrified because my family is not showing any sign of wanting to pay.they said community but the community college does not have my major. i am trying to apply for last minute scholarships (it being late May and all) and i am trying to consider whether or not student loans are worth it and where to look. if anyone can please help me that would be great bc i am having breakdowns from the panic and worry my family is causing me.

[chikasu]

That’s a tricky tactic. But makes sense.

[OscarRamos-qlio]

So is better to try and use (if possible) the unsubsidized loan in your last year or semester of college to prevent interest accumulation?

[dogarflores]

Great video. I have a subsidized loan; however, this summer, I was given an unsubsidized loan for one class. In the end of the six months grace period, will I need to make two separate payments plus the interest of the unsubsidized loan or do both loan combine to on monthly payment ? I just want to know that I am having one payment in the end of my degree and not two payments. Thanks

[howtodoit]

Can i just get a loan with no interest rate?

[troybody]

How did you get the 1550? I kee[ getting 1642.5. Where am I going wrong?