Private Bank Loans- Can be used when you don't have or can't take money from anywhere else. It is flexible and helps you put money where you need it most. If you took out 5,000 dollars per year, with a private loan, it would cost you 6.15% in interest. It would take ten years for me to pay off 20,000 dollars with a 6.15% interest. I would have to pay 233.55 per month and it would be a total of $26,760.
Federal Subsidized-Government pays interest. If the government payed my interest on a 20,000 dollar loan and it took me ten years to pay off I would be paying 195.65 per month.
Federal Unsubsidized- Government does not pay interest. If I was paying my own interest on my loan, the interest rate would be %4.29 and it would cost me $205.26 dollars per month to have my loan paid off in ten years. It would be a total of $28,580.
Federal Subsidized-Government pays interest. If the government payed my interest on a 20,000 dollar loan and it took me ten years to pay off I would be paying 195.65 per month.
Federal Unsubsidized- Government does not pay interest. If I was paying my own interest on my loan, the interest rate would be %4.29 and it would cost me $205.26 dollars per month to have my loan paid off in ten years. It would be a total of $28,580.