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What is the interest rate for federal loans?

Is there an interest rate for federal loans and is it applied immediately or only after a certain amount of time after student status has ended? #college #student #loans

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Benjamin’s Answer

For student loans you get subsidized and unsubsidized loans. Subsidized loans have lower interest rates which is about 2-3% and those do not start adding interest until 6 months after your student status has ended. Unsubsidized loans have higher interest rates, about 5-6% and they start being applied immediately.

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Yasemin’s Answer

Hi Hannah ! In addition to the answer provided here definitely apply for subsidized loans first. As long as you are in school at least half time which should be about 6 credits/semester (please double check with financial aid) interest will not accrue. Another point is to pay off interest while you are in school. If you have a part time job and can make minimum payments for interest it can help keep your loan amount in check. For example if you take out a loan for 5,000 and 5% is interest it can start adding up per month but to keep the 5,000 in check if you pay an amount of the interest, all or some payment, it can keep the loan amount not accrue as much. Just something to keep in mind!

Best of luck!
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