Unsub. Loan - From when will the Interest start being charge

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Unsub. Loan - From when will the Interest start being charge

Postby raehza » Wed Apr 10, 2013 3:59 pm


A person I know has gotten the opportunity to go to Barry Uni in Miami with a very large scholarship. Still, she is going to loan $3000,- subsidized from the College and $6000,- of subsidized loans per year. She is studying to become a PA.

Now the question I have is, will she be charged $6000,- x 6 years = $54000,- x (current loan % which is 6.8%) or 6.8% for the amount borrowed per year.

In other words: The first year of uni she will be borrowing $6000,- of unsubsidized loans. Will she be charged 6.8% of $6000,- or 6.8% of the ENTIRE loan amount for 6 years, per year?

I hope this makes any sense to you guys,

many thanks!
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Re: Unsub. Loan - From when will the Interest start being charge

Postby Aid Whiz » Tue Apr 16, 2013 1:36 pm

Interest will not accrue on the 6-year amount, as it only accrues on loans that have been disbursed.

A $6,000 loan will accrue about $400 in interest in 1 year. So at the end of 6 years, a breakdown of the interest from oldest loan to newest would look something like this:

Loan 1: $2,448 (intrest accrues for 6 years)
Loan 2: $2,040 (interest accrues for 5 years)
Loan 3: $1,632 (interest accrues for 4 years) etc.
Loan 4: $1,224
Loan 5: $816
Loan 6: $408

For a total of $8,568.

Keep in mind that at the end of her grace period, this interest will capitalize, so if possible, it's always good to pay off some of the loans while in school.

Sallie Mae has a good accrued interest calculator if it helps: https://www.collegeanswer.com/tools/acc ... fault.aspx
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