Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.
An unsubsidized loan is a loan that you must start paying on right away, even while you are in college.
A subsidized loan is a loan that the government pays the interest on until you graduate and then you must start paying the loan.
Both of these specific loans actually have the same interest rate, which is 4.66%. When calculating interest, you need to convert the interest rate into a decimal and then multiply it to the original amount borrowed, or the principal.
So, let's say we borrow $5,000 our four years of college with a subsidized loan. Therefore, we borrowed a total amount of $20,000. Then we take the formula for
An unsubsidized loan is a loan that you must start paying on right away, even while you are in college.
A subsidized loan is a loan that the government pays the interest on until you graduate and then you must start paying the loan.
Both of these specific loans actually have the same interest rate, which is 4.66%. When calculating interest, you need to convert the interest rate into a decimal and then multiply it to the original amount borrowed, or the principal.
So, let's say we borrow $5,000 our four years of college with a subsidized loan. Therefore, we borrowed a total amount of $20,000. Then we take the formula for