Consolidating subsidized and unsubsidized student loans

The main benefits of unsubsidized student loans are that they are available to both undergraduate and graduate students, and there is no requirement to prove there is a financial need for the loan.

Students are also able to borrow more money with an unsubsidized loan as the loan limit can have a maximum amount of ,000.

If you are enrolled in a 4-year degree program, the maximum period that you can receive subsidized loans is six years.

If you are enrolled in a two-year associate degree program, the maximum period is three years.

The guidelines that determine the amount of money that you can receive depending on your school and what year you are in.

Most students are limited to ,500 in subsidized student loans for their first year of school, ,500 for their second year, and ,500 for their third and fourth years according to the Department of Education.

The amount that you are allowed to borrow each year also depends on what year you are in school and your dependency status. The difference between an unsubsidized loan and a subsidized loan is that the borrower is responsible for paying the interest on an unsubsidized loan while the student is in school—provided the student is attending school at least half-time—and for the first six months after graduating (a grace period), and during a deferment period. If you decide to take out a private student loan you will pay all the interest even while you are in school.

Get expert advice, tips, and news in our latest articles, or use the search bar (the magnifying glass in the top right corner) to find specific loan topics.

The student loan market is massive and keeps on getting bigger every year.

Part of this is due to the rising costs of college tuition and part is due to the number of people attending college.

If you can’t make the payments on the loan, that interest is added to the total amount, and any interest that goes unpaid will slowly build over time.

The downsides of a subsidized loan are that you are limited to the amount that you can take out.

One drawback that comes with both subsidized and unsubsidized loans of any kind is that you are taking on debt.

You must have an account to comment. Please register or login here!