Government subsidized loans are available to undergraduate students with financial needs. The school determines the amount of money you can borrow, and the amount may not exceed your financial need. They government pays the interest on a subsidized loan while you are in school at least half the time, for the first six months after you leave school, and during a period of deferment. Government non-subsidized loans are available to undergraduate and graduate students, and there is no requirement to demonstrate financial need. The school also determines the amount you can borrow based on you cost of attendance and other financial aid you receive. You are responsible for you the interest during all periods, and if you choose not to pay during these periods your interest will accumulate and be capitalized. Bank loans have a low interest rare and you are able to take out as much as you want, depending on your credit, you may also need a cosigner. Credit union loans are pretty much the same as bank loan but usually have a higher interest rate. Interest rates for subsidized loan are usually around 4.29%, for non-subsidized loans, the interest rate also is around 4.29%. Bank loans also have interest rates around 3-4%. Credit union loans can have interest rates of 1-20%. None of these numbers are exacts, they depend on lots of things. Your interest rates are calculated based on how much money you are taking out and the length of time that they are being taken out. From my findings, it will take a little over 4 year to pay back a $20,000 loan with an interest rate of 4.20%
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November 2015
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