We learned about the difference between subsidized loans and unsubsidized loans and then the difference between subsidized loans and bank loans. The main difference between subsidized loans and unsubsidized loans is that the federal government pays the interest on subsidized loans during the periods of authorized deferment, such as the in-school and economic hardship deferments, while the interest remains the responsibility of the borrower on an unsubsidized loan. This makes subsidized loans a less-expensive option for students; however, the interest will become their responsibility after graduation.
The difference between subsidized and bank loans is that bank loans have no affiliation with the government where subsidized loans do. Also, Federal loans are more flexible than bank loans.
If I were to start college today, depending on the amount of money I make each month, I think I would chose to pay of my college loans over a 15 year period. If I chose a 15 year period, I would be paying about $218 a month for the loan of $5000 over 4 years. I figured this out by taking the equation A=P(Hr)^x. In this case, x=15 for the number of years I am choosing to pay off my loans. So, A=20,000(1+.046%)^15 which = 39,264/180 which then = $218 a month. Actually that is not a bad price to pay for an education especially to the total I would pay if I chose to pay it all off in 10 years which would be $261 a month. Also, if I chose to pay it off in 20 years the total a month would be less ($204 a month) but it would take an extra 5 years to pay off. Overall, I think the 15 year plan is the best plan to chose.
Actually, by-weekly-plans are the best plan to chose because you would actually receive an extra payment each year, but if not... I want to pay over a 15 year period. :) Wooh! Can't wait for college!
The difference between subsidized and bank loans is that bank loans have no affiliation with the government where subsidized loans do. Also, Federal loans are more flexible than bank loans.
If I were to start college today, depending on the amount of money I make each month, I think I would chose to pay of my college loans over a 15 year period. If I chose a 15 year period, I would be paying about $218 a month for the loan of $5000 over 4 years. I figured this out by taking the equation A=P(Hr)^x. In this case, x=15 for the number of years I am choosing to pay off my loans. So, A=20,000(1+.046%)^15 which = 39,264/180 which then = $218 a month. Actually that is not a bad price to pay for an education especially to the total I would pay if I chose to pay it all off in 10 years which would be $261 a month. Also, if I chose to pay it off in 20 years the total a month would be less ($204 a month) but it would take an extra 5 years to pay off. Overall, I think the 15 year plan is the best plan to chose.
Actually, by-weekly-plans are the best plan to chose because you would actually receive an extra payment each year, but if not... I want to pay over a 15 year period. :) Wooh! Can't wait for college!