| Having a low interest rate is obviously a good thing | | | | all of their loans must be subsidized, and therefore |
| for borrowers obtaining any type of loan, but when it | | | | are not accruing interest. This is not the case. |
| comes to student loans, they may be even more | | | | Unsubsidized student loans are often given with an |
| important. Low interest student loans are the only | | | | academic deferment. A deferment allows you to wait |
| way to get through your education without racking | | | | to make payments much the same as subsidized |
| up a mound of student loan debt in the process. If | | | | loans, but interest continues to accrue throughout |
| you think about it, for many people student loan | | | | the period. |
| debt will be their second biggest financial burden aside | | | | This is why low interest student loans are so |
| from a mortgage. Here are some examples... | | | | important. The lower your interest, the less it costs |
| If you have to borrow ten thousand dollars per year | | | | for you to go to school. Additionally, you can lower |
| for college, and you go to school for just four years, | | | | the amount of money you have to pay when you |
| you have borrowed forty thousand dollars. Those are | | | | graduate by paying the interest on your unsubsidized |
| some pretty hefty numbers. Now figure that you are | | | | loans throughout your academic career. This lowers |
| paying at least six percent interest on those loans | | | | your expenses after school dramatically. If you have |
| while you aren't paying on them. By the time you | | | | low interest student loans, this is much easier to |
| graduate you will owe six thousand dollars in interest | | | | work into your meager budget while you are still in |
| on the principal alone! That does not include any | | | | college. |
| finance charges that may also apply. | | | | Contrary to popular belief, low interest student loans |
| It is very easy to forget how much interest you are | | | | are quite easy to find and obtain. Many of them do |
| racking up while you are in school. Most, if not all, of | | | | not even require a credit check. In truth, most |
| your student loans do not have to be paid until after | | | | unsubsidized loans are made based on financial need |
| you graduate. Since you are not making any | | | | rather than on credit, making them much easier to |
| payments, you don't tend to think about how much | | | | obtain and making interest rates much lower. In the |
| academic debt you are really accumulating. | | | | end, your student loan debt becomes much easier to |
| Some people become confused by the financial aid | | | | maintain and manage as you reach completion of |
| process. They think that because they do not have | | | | your degree and eventually find a career in your |
| to pay on their student loans while they are in school, | | | | chosen field of expertise. |