Taking Advantage of Subsidized Student Loans

Subsidized student loans are the best option for your student loan needs. If you can qualify for a subsidized student loan, you will save a substantial amount of money in interest. When you get a subsidized student loan, the government helps you in a number of ways. Here are a few things that subsidized student loans offer.

Subsidized Interest Payments

While you are in college, the interest on your loan starts to accrue. If you have an unsubsidized student loan, the interest is your responsibility. You either have to pay it then or defer it until after graduation. With a subsidized student loan, the government takes care of this payment for you and will pay the interest for you. Once you graduate, your loan balance will be much smaller than it would be with a different type of loan. Interest is expensive so this is a great benefit.

Lower Interest

Government loans also offer lower interest rates. In some cases, you will actually pay up to 3% less than those with unsubsidized loans for college. While 3% might not seem like much, it adds up over the life of the entire loan period.

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