1. Types of Student Loans
A. Direct Subsidized
B. Direct Unsubsidized
C. Direct PLUS
2. Terms and Interest Rates
A. Interest Rate 4.66%- only available to 4 Yr. student
B. Interest Rate 4.66%- Available to Parents and 4 Yr.
C. Interest Rate 7.21%- Available to Grad School, 4 Yr. and Parents
You don't need a cosigner to be able to remove student loans, however you must actually be in need of a student loan to be able to apply for one. The individual who signed on the loans is responsible for repaying them.
3. How is interest Calculated ?
Interest is calculated with the formula A=P(1+r)^t
4. How is interest Compounded?
Interest is compounded monthly, in order to lower the overall price of the students complete debt at the end of college.
5. When is the interest Accumulated?
Interest gets accumulated when the student has graduated college to make it easier on them financially. It allows them grace so that they don't have to try to pay off the debt when they don't have the money to.
6. What does the interest rate depend on?
Interest is the money owed for borrowing the money, the rates right now are 4.66% for the Subsidized and Unsubsidized, while the rate for the PLUS is 7.21%. All of these rates are dependent on what the government sets them at.
Direct Subsidized Pay Back Cost -
I used the Loan Calculator to determine the complete cost of the loan payment with the interest and it came out to be $21,960. So knowing that I used $20,000 the interest I would end up paying would be $1,960.
Direct Unsubsidized Pay Back Cost -
Again I used the Loan Calculator to determine the complete cost of the loan payment with interest and it came out to a total of $22,899. Knowing I used $ 20,000 in loans, the interest ended up being a total of $2,899.
Direct PLUS Pay Back Cost -
I used the Loan calculator to determine the cost of the payment again, and it came out to be $23,082 with interest. So knowing again that I borrowed $20,000 in loans, the total interest of the PLUS pay back would be $3,082.
A. Direct Subsidized
B. Direct Unsubsidized
C. Direct PLUS
2. Terms and Interest Rates
A. Interest Rate 4.66%- only available to 4 Yr. student
B. Interest Rate 4.66%- Available to Parents and 4 Yr.
C. Interest Rate 7.21%- Available to Grad School, 4 Yr. and Parents
You don't need a cosigner to be able to remove student loans, however you must actually be in need of a student loan to be able to apply for one. The individual who signed on the loans is responsible for repaying them.
3. How is interest Calculated ?
Interest is calculated with the formula A=P(1+r)^t
4. How is interest Compounded?
Interest is compounded monthly, in order to lower the overall price of the students complete debt at the end of college.
5. When is the interest Accumulated?
Interest gets accumulated when the student has graduated college to make it easier on them financially. It allows them grace so that they don't have to try to pay off the debt when they don't have the money to.
6. What does the interest rate depend on?
Interest is the money owed for borrowing the money, the rates right now are 4.66% for the Subsidized and Unsubsidized, while the rate for the PLUS is 7.21%. All of these rates are dependent on what the government sets them at.
Direct Subsidized Pay Back Cost -
I used the Loan Calculator to determine the complete cost of the loan payment with the interest and it came out to be $21,960. So knowing that I used $20,000 the interest I would end up paying would be $1,960.
Direct Unsubsidized Pay Back Cost -
Again I used the Loan Calculator to determine the complete cost of the loan payment with interest and it came out to a total of $22,899. Knowing I used $ 20,000 in loans, the interest ended up being a total of $2,899.
Direct PLUS Pay Back Cost -
I used the Loan calculator to determine the cost of the payment again, and it came out to be $23,082 with interest. So knowing again that I borrowed $20,000 in loans, the total interest of the PLUS pay back would be $3,082.