Sub vs Unsub
Subsidized loans government pays the interest. When the person is in school or the economic hardship deferments.
Unsubsidized is the responsibility of the borrower.
Subsidized is the least expensive option. During subsidized responsibility to repay back the government is suspended as long as you're in school half time. Payments are delayed until the end of grace period after graduation. Subsidized loans the government pays the interest as it accrues. And Unsubsidized loans increase if the interest is not paid.
Gov vs Bank
Federal loans funded by government, private loans are from the bank
Federal loans include many benefits such as fixed interest rates and income based repayment plans. Bank loans are usually more expensive. Federal loans pay when graduate and/or change your enrollment status to less than half time
BAnk loans you pay while still in college.
Dont need a credit check for most federal loans
INterest rate is fixed and lower than private loans
You might need a cosigner for bank loans
Bank loans are not subsidized
Federal loans you maybe able to postpone or lower your payments
THere is no prepayment penalty fee for federal loans
Interest Rates
Subsidized- 4.66%
Unsubsidized- 4.66%
Bank loans- 5.99%-11.24%
Subsidized loans government pays the interest. When the person is in school or the economic hardship deferments.
Unsubsidized is the responsibility of the borrower.
Subsidized is the least expensive option. During subsidized responsibility to repay back the government is suspended as long as you're in school half time. Payments are delayed until the end of grace period after graduation. Subsidized loans the government pays the interest as it accrues. And Unsubsidized loans increase if the interest is not paid.
Gov vs Bank
Federal loans funded by government, private loans are from the bank
Federal loans include many benefits such as fixed interest rates and income based repayment plans. Bank loans are usually more expensive. Federal loans pay when graduate and/or change your enrollment status to less than half time
BAnk loans you pay while still in college.
Dont need a credit check for most federal loans
INterest rate is fixed and lower than private loans
You might need a cosigner for bank loans
Bank loans are not subsidized
Federal loans you maybe able to postpone or lower your payments
THere is no prepayment penalty fee for federal loans
Interest Rates
Subsidized- 4.66%
Unsubsidized- 4.66%
Bank loans- 5.99%-11.24%