Student Loans

Student Loans Mpn – The Difference between Subsidized and Unsubsidized Student Loans

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Student Loans Mpn – Review

This video explains the difference between subsidized and unsubsidized student loans. “Subsidized” means that the U.S. government pays the interest that accrues while the student is attending school at least half-time, in a grace period, or in deferment. Unsubsidized begin incurring interest immediately, and the interest is added to the loan’s balance at the end of each period assuming the student does not pay the interest. The video provides an example to illustrate how this process (known as interest capitalization) works with an unsubsidized loan.

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36 Comments

  1. Sharon Williams
    July 27, 2021 at 11:43 am

    thank you! im about to take out my first unsubsidized loan as a senior and it was stressful trying to find information on it

  2. Muhammad Mike Kazoun
    July 27, 2021 at 11:43 am

    Any clue why I was only offered an unsubsidized loan?

  3. Tori Patrick
    July 27, 2021 at 11:43 am

    I’m still to this day very confused and trying to learn I’m just beginning college and idk why i Unsubsidized loans. I thought I had subsidized

  4. BOEING 747 FLIGHT
    July 27, 2021 at 11:43 am

    Indians your gaming per-cap should be different then what the government is issuing .You should receive 2500. From Biden administration .plus you receive your gaming check.

  5. Courtney Ricketts
    July 27, 2021 at 11:43 am

    For unsubsidized loans does interest always accrue at an APR(yearly) or does it accrue by semester? Thanks for all your help!

  6. Erika E
    July 27, 2021 at 11:43 am

    Thank you so much. 😢

  7. Infinite Vibes
    July 27, 2021 at 11:43 am

    The government hasn't helped students this year & it's so upsetting because we are in the middle of a pandemic & most of us aren't making money like we did in 2019. So they are using 2019 taxes to determine if we can pay for college. Besides that, College students couldn't get stimulus check. They truly want us to fail, when we are supposed to be the future.

  8. Alaa Saleh
    July 27, 2021 at 11:43 am

    Thank you so informative!!!!

  9. Sierra Denae
    July 27, 2021 at 11:43 am

    Does the department of education still pay interest on the subsidized loan even if you don’t go to college in the summer ?

  10. Some Great Days
    July 27, 2021 at 11:43 am

    Thanks so much for this video! I really wish they taught this back in high school as many have mentioned in the comments here.
    I'm currently in a college student and had to find out what this means, which is quite unfortunate. Keep up the good work in making videos like these!

  11. Ray Min
    July 27, 2021 at 11:43 am

    serious khan academy vibes

  12. kat Nunez
    July 27, 2021 at 11:43 am

    Am thinking about getting a student loan for to pay for one class term and then try to pay it before the semester ends. Is that possible?

  13. Christopher Martinez
    July 27, 2021 at 11:43 am

    This is not a good video. It does not represent the way the loans interest is calculated. Interest is accrued daily meaning it is charged daily( = principal balance x (interest rate/ 365)). Interest begins to “compound” or capitalize after grace period of graduating or when you fall below hall-time credit hours.

  14. Cindy
    July 27, 2021 at 11:43 am

    maann I only qualify for an unsubsidized loan through my school! I wish I had applied for a scholarship. Dang. I'll try again for spring semester :/

  15. Samuel Xie
    July 27, 2021 at 11:43 am

    With subsidized student loan, after you graduate and you pay the 3,000 in full. I am done with that payment right? And with unsubsidized student loan, if I also pay in full, i just have to pay $3646.52 and im good right?

  16. nathesamurai
    July 27, 2021 at 11:43 am

    so my school is offering me $41,000 which cuts my cost down to $13,000 per year and I am terrified because my family is not showing any sign of wanting to pay.they said community but the community college does not have my major. i am trying to apply for last minute scholarships (it being late May and all) and i am trying to consider whether or not student loans are worth it and where to look. if anyone can please help me that would be great bc i am having breakdowns from the panic and worry my family is causing me.

  17. EDWARD MONTALVO
    July 27, 2021 at 11:43 am

    so on an unsub loan, you can pay off the yearly interest?

  18. Hyghly Defyned
    July 27, 2021 at 11:43 am

    Ooh damn…..

  19. Kelly Xiong
    July 27, 2021 at 11:43 am

    Hi there, So that $646.52 interest rate would be the most smart choice to pay it all in full after graduating then pay the 3,000 either in full or monthly? but after paying the interest rate will the original borrowed money stop increasing even after paying off the interest rate? or it will still continue to increase 5% each time?

  20. Shari Scott
    July 27, 2021 at 11:43 am

    *Accrued!

  21. We Love Libraries
    July 27, 2021 at 11:43 am

    Where you go to college is meaningless to happy or success in life according to every study ever. Go to a college where all you’d ever need are subsidized loan. The best way is to have your parents put 20K in a index like TQQQ when you start college. You take out the subsidized loans to live on every year. Don’t touch the 20K over 4 or 5 years. Then you’ll have enough when you graduate debt free. 👍😎

  22. Marina
    July 27, 2021 at 11:43 am

    Man why the government hate us so much like…stop taking my money

  23. Sheryl Letang
    July 27, 2021 at 11:43 am

    My daughter supposed to get a refund. I want her to put back 80% of that to her unsubsidized loan. Please advise me the proper way to do that. I would really appreciates it.🌼

  24. Nick Moreno
    July 27, 2021 at 11:43 am

    Great and simple explanation! Wish they taught this in high school.

  25. Christine Crahan
    July 27, 2021 at 11:43 am

    I'm confused because dont direct spafford loans compound daily (interest rate/days of the year, applied daily)? Not annually like is shown in this example?

  26. Pseudonymph Music
    July 27, 2021 at 11:43 am

    Thank you very much, but who else is hyperventilating? No? Just me? Cool, cool

  27. Thomas Gaertig
    July 27, 2021 at 11:43 am

    wish i watched this four years ago

  28. Adela Negoita
    July 27, 2021 at 11:43 am

    THANK YOU SO MUCH

  29. thehenessy
    July 27, 2021 at 11:43 am

    This video was very informal! Thank you for taking the time to make this!

  30. anna rubica
    July 27, 2021 at 11:43 am

    The higher the loan amount, the tougher it will get for an international student, because the bank / lending officer will find it riskier to lend to someone who (a) does not have a high income and (b) won’t stay in the country for the duration of the loan,visit-https://shorttermcredits.com/personal-loans-for-bad-credit.php

  31. lu
    July 27, 2021 at 11:43 am

    thank you so much

  32. Avi Jenkins
    July 27, 2021 at 11:43 am

    You Sir are sooooooo Helpful thank you 🙏🏽👏🏽👏🏽👏🏽

  33. Maddy K
    July 27, 2021 at 11:43 am

    What about after the deferment period of 6 months for unsubsidized, are you still gaining interest even when you are making payments?

  34. Robert Slocumbe
    July 27, 2021 at 11:43 am

    You could have made the second half of this video a lot shorter. Otherwise very informative! Thanks!

  35. Bella B
    July 27, 2021 at 11:43 am

    Thank you so much, this was really helpful.

  36. Deena Fadah
    July 27, 2021 at 11:43 am

    Thank you!! This was very informal and helpful