Which is better Subsidized or Unsubsidized student loans?

Subsidized Loan

Subsidized Loan is for undergraduate students with financial difficulties like minmum support from family, and no grants and scholarships. The benefit of a subsidized loan you don’t have to pay interest when you are in college or at least half of the time which leads to less interest amount in the end. If you don’t have other debt or less debt you are easily eligible.

Unsubsidized Loan

Both undergraduate and graduate students have financial difficulties like minimum support from family, and no grants and scholarships can get Unsubsidized Loans. Unlike a Subsidized Loan, you have to pay interest during the college year which is a downside. You can decide to pay interest or let it accumulate but I recommend you pay it monthly. If you don’t have other debt or a small amount of debt you are eligible for it.

Which to chose.

If you are an undergraduate then definitely chose the subsidized one but if you are a graduate then you have only one option. Read all the terms and conditions to make sure you understand them.

If you want another way. I have advice If your family is stable let your parents take the loan for you. They will pay the debt payment every month for you and At the end of your college, your parents will finish paying the loan. After you get a job you can pay the loan and the interest to your parent. It will act as their retirement fund and they can do fixed deposit or investment it and live their life off the investment. That How I pay less interest to the bank than I have to.

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