Student Loans : How to Compare Unsubsidized vs. Subsidized Student Loans


Hello, I’m Cheri Ashwood. I’m a guidance counselor,
and today I’m going to tell you how to compare unsubsidized and subsidized student loans.
The difference between unsubsidized and subsidized loan is that an unsubsidized loan is where
the borrower, or the student, is responsible for repayment of the interest, or the interest
accrues from the time that you awarded the loan. That means that when you are awarded
the loan on Monday, on Monday it starts to build interest, and you are responsible for
that interest. On a subsidized loan, the interest does not begin to accrue until separation
from school. That can mean graduation, or at any point in time that you fail to be a
full time student. You either separate from school completely, or drop below the required
number of credit hours to be a full time student. With an unsubsidized student loan, you can
begin to pay that interest at any time, a little bit at a time, or as much as is possible.
If you can’t repay it until graduation, upon the point where you gain employment, that’s
fine. But that interest will accrue. On a subsidized loan, you don’t even have to think
about interest until the time that you separate from school. I’m Cheri Ashwood. I’m a guidance
counselor, and your future starts today.

7 comments on “Student Loans : How to Compare Unsubsidized vs. Subsidized Student Loans”

  1. EpicSince2o1o says:

    If I were to take out subsidized loan, and I were to take out subsidized loans while earning my BA, and then I go on to medical school right after earning my BA, when would I have to start worrying about building interests?

  2. speechless00 says:

    what the name of the money that you don't have to pay—- grant?

  3. Illmatic662 says:

    @lccsmdesiree The thing is though, with a private loan they can default on your loan if you take late too pay them.

    Also one missed payment and your interest will go up right away. According to what I have read, with federal loans it takes a MUCH longer time for your interest to increase if you do not pay. I think its a couple of months, also with private loans they get collections and everything involved.

  4. Clarica Harris says:

    Very helpful, I'm glad I chose the subsidized student loan !

  5. Gia Smith says:

    I was awarded both loans but only got a stipend for sub loan when will I get the other ?

  6. Steven Buffington says:

    so helpful!!!!! thank you so much!!!!!

  7. Jazz Black Valcin says:

    Will I qualify for unsubsidized student loans if I’m not a citizen yet?

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