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!
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?
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.🌼
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?
You’re right somewhat. The loan does not “compound” daily. 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.
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. 👍😎
Good advice. except for the $20k from parents part. Not everyone comes from a well off or even middle class family. My parents were financially unable to provide anything for my education. i dont blame them, they were never educated themselves and worked very hard being paid low wages trying to provide for me and my siblings. i was able to get 2 bachelor degrees (double major) and masters from a combination of working while going to school, scholarships and subsidized loans. Those 3 degrees only cost me
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?
If you take out a subsidized loan, then you will not be responsible for any interest the loan accrued while you were in college. Thus, if you pay a subsidized loan as soon as you graduate from college, you will pay no interest on the subsidized loan
@@Edspira What if my subsidized loan is different amount each year. Lets say year 1 its $1000, year 2 is $1200, year 3 $1400 and year 4 is $1600. How much would i have to pay after i graduate college?
@@ssamuelxie you would just add it all up, which would cost you $5200 after you graduate college. So you have to pay that amount within the grace period of 6 months after graduating to avoid paying government interest. @Edspira correct me if im wrong. :) this is new to me too.
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.
So the interest on a student loan is applied on the principle Yearly and not monthly? So what happens if you pay off a subsidized loan before you are out of school? There is no interest payments? For a subsidized loan, what if a person pays off part of the loan while in school? Does the interest applied yearly then apply to the remaining amount instead of the original amount? unsubsidized loans accrue interest on the remaining amount yearly?
Unsubsidized loans will start incurring interest immediately when you receive them, and the interest will continue until the loan is paid off. If the loan is in deferment for 6 months, this means that you aren't required to make payments for 6 months but the loan will still be incurring interest. If you start making payments early, this will decrease your principal. So essentially, the amount you pay towards interest will decrease if you make early payments, but you will still be incurring interest.
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.
If money is an issue then you should seriously consider community college. I obtained an associate's degree from a community college at a very low cost and then was able to transfer to a 4-year university to pursue the degree I wanted. Student loans should be minimized if at all possible
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.
Daily (1/365) = principal balance * (interest rate/365) Yearly (365) = principal balance * (interest rate) There is no difference between the way you explained it and how the man in the video explained it. Therefore, this argument is void.
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-shorttermcredits.com/personal-loans-for-bad-credit.php
Shoulda coulda woulda. The video was satisfactory. And I would highly recommend every prospective student try this exercise for themselves before taking on a higher education loan.
