Government subsidized the government pays for interest while in college. Non-subsidized interest is not payed for by the government. Bank Loans are a private loan. If you take out 5,000 a year for 4 years how long will it take you to pay of the loan? Government subsidized loans have and interest rate of 5%, Non-subsidized interest is 4.29%. Bank Loans interest rates are 7.5%. If you take 8-10 yeas to pay off a Government subsidized loan in will cost $212-322$ a month, you will be paying $3,191-$5,456 plus the $20,000. if you take the same amount of time for a Non-subsidized loan it will cost $205-$316, and in total you would pay $2,726-$4,642 extra. For a private bank loan to pay off in 8-10 years it will cost $237-$346 and in total you would pay $4,898-$8,488 plus the 20,000.
|
Archives
December 2015
Categories |