Radio Flyer1647545514 Posted August 6, 2009 Report Share Posted August 6, 2009 Which one is the smartest one to go with? I got offered more money on the subsidized loan, but I don't need it all this quarter. Which one is the smarter one to choose and why? Quote Link to comment Share on other sites More sharing options...
silverhatch Posted August 6, 2009 Report Share Posted August 6, 2009 Subsidized loans have a lower interest rate. Quote Link to comment Share on other sites More sharing options...
dakotart Posted August 6, 2009 Report Share Posted August 6, 2009 if i remember correctly, subsidized loans, the govt pays the interest on until 6 months after you exit school (graduate, quit, or less than x credits in a quarter) The do not have a lower interest rate. Quote Link to comment Share on other sites More sharing options...
Radio Flyer1647545514 Posted August 6, 2009 Author Report Share Posted August 6, 2009 Yeah, government pays interest on the Subsidized until 6 months after I graduate or all that other stuff. UnSub I pay interest on it. So would I assume that it would just be better to take the Subsidized so I don't have to pay any money right now? Quote Link to comment Share on other sites More sharing options...
dakotart Posted August 6, 2009 Report Share Posted August 6, 2009 I have both sub and unsub right now. I'm not paying anything. however, interest is accruing on the unsub and being added to the balance. When I graduate, the sub loan will be exactly the amount i borrowed. the unsub loan will be bigger. Both of my sub and unsub have the same interest rate. Quote Link to comment Share on other sites More sharing options...
Radio Flyer1647545514 Posted August 6, 2009 Author Report Share Posted August 6, 2009 Thanks for the explanation. First loans I'm having to take out, don't want to drop myself into a money pit. Quote Link to comment Share on other sites More sharing options...
Littleguy Posted August 6, 2009 Report Share Posted August 6, 2009 On a subsadized loan it is also easier to do a deffer payment later on if you need to due to loss of work or other situations. Quote Link to comment Share on other sites More sharing options...
silverhatch Posted August 7, 2009 Report Share Posted August 7, 2009 Sorry, guess I was wrong about the interest rate. It's been awhile since I was in college. Quote Link to comment Share on other sites More sharing options...
iwashmycar Posted August 7, 2009 Report Share Posted August 7, 2009 Get Subsidized if you can... The interest SUCKS....It'll be there but anything helps. I've paid back thousands and i'm not sure i'm through the interest yet EDIT: Yeah mine are all UnSub'd, and well Ill be paying back interest forever... its up over 9K. I made a payment under a week ago, and its already earned $17 in interest that i'll be paying next month.... Quote Link to comment Share on other sites More sharing options...
dakotart Posted August 7, 2009 Report Share Posted August 7, 2009 Get Subsidized if you can... The interest SUCKS....It'll be there but anything helps. I've paid back thousands and i'm not sure i'm through the interest yet EDIT: Yeah mine are all UnSub'd, and well Ill be paying back interest forever... its up over 9K. I made a payment under a week ago, and its already earned $17 in interest that i'll be paying next month.... You pay the interest on the subsidized loans when you exit school. its is only subsidized when you are in school. Quote Link to comment Share on other sites More sharing options...
iwashmycar Posted August 7, 2009 Report Share Posted August 7, 2009 You pay the interest on the subsidized loans when you exit school. its is only subsidized when you are in school. right. ive been paying interest for all the years ive been in i guess Quote Link to comment Share on other sites More sharing options...
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