Which is better sub or unsub loan?

Anyone can borrow unsubsidized federal loans, but those who qualify for the subsidized version save more money in interest. When choosing a federal student loan to pay for college, the type of loan you take out — either subsidized or unsubsidized — will affect how much you owe after graduation.

What is an entrance interview for student loans?

The entrance interview is a presentation of information and a series of questions that explains the commitment the student is making. It is important that students understand that loans require repayment and the entrance interview helps educate students to what they can expect when the enter repayment on their loans.

What is DL entrance counseling?

Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You’ll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.

What is a sub and unsub?

Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods. Unsubsidized Loans are loans for both undergraduate and graduate students that are not based on financial need.

What increases total loan balance?

When the interest on your federal student loan is not paid as it accrues during periods when you are responsible for paying the interest, your lender may capitalize the unpaid interest. This increases the outstanding principal amount due on the loan.

How do I do entrance counseling?

Follow the steps below to complete Entrance Counseling:

1. Navigate to the website: www.studentloans.gov.
2. Click “Sign In” under Manage My Direct Loan.
3. Click Complete Entrance Counseling.
4. Select either “Undergrad” or “Graduate” loans based on your enrollment.
5. Complete your Loan Entrance Counseling.

What happens if I don’t do exit counseling?

Exit counseling is required by federal law. What happens if you don’t complete it depends on your school. Typically, the Bursar’s office will put your transcripts and diploma on hold until you finish exit counseling. Generally, you’ll still be able to graduate.

What’s the difference between forbearance and deferment?

Both allow you to temporarily postpone or reduce your federal student loan payments. The main difference is if you are in deferment, no interest will accrue to your loan balance. If you are in forbearance, interest WILL accrue on your loan balance.

What increases your total loan balance quizlet?

Capitalization increases the unpaid principal balance of your loan, and we will then charge interest on the increased principal amount. This can substantially increase the total amount you repay over the life of your loan.

What is the most popular type of student loan?

A Quick Guide to the 4 Most Common Federal Student Loans

• Perkins Loan — 5 percent fixed interest rate.
• Direct Subsidized Loan — 4.66 percent interest.
• Direct Unsubsidized Loan — 4.66 percent for undergrads, 6.21 percent for grads students or professionals.
• Direct PLUS loan — 7.21 percent.