Government subsidized loan is when the The U.S. Department of Education pays the interest on your loan when you have financial needs and qualify for the loan when you are in school.
Government Unsubsidized loans is when you are required to pay the interest on your loan when you are in school.
The current interest rate on college loans is 4.66% of how much you have taken.
If you have taken out $5,000 for you Freshman, Sophomore, Junior, and Senior year you would owe $20,000, If you had a subsidized loan you would only have to pay it when you get out of school. If you plan on paying on it for the next 20 years you would have to pay a total of $49,732. If you wanted to figure out what you would pay monthly you would divide that number by 240 because there is 240 months in 20 years. You would end up paying $207 a month for the next 20 years.
Calculations $20000\left(1+\frac{0.0466}{1}\right)^{20}$
Government Unsubsidized loans is when you are required to pay the interest on your loan when you are in school.
The current interest rate on college loans is 4.66% of how much you have taken.
If you have taken out $5,000 for you Freshman, Sophomore, Junior, and Senior year you would owe $20,000, If you had a subsidized loan you would only have to pay it when you get out of school. If you plan on paying on it for the next 20 years you would have to pay a total of $49,732. If you wanted to figure out what you would pay monthly you would divide that number by 240 because there is 240 months in 20 years. You would end up paying $207 a month for the next 20 years.
Calculations $20000\left(1+\frac{0.0466}{1}\right)^{20}$