Subsidized and unsubsidized student loans differ primarily in how interest is handled. Subsidized loans are need-based, and the government pays the interest while you're in school at least half-time, during the 6-month grace period after graduation, and during deferment. For example, a $10,000 subsidized loan at 5% won't accrue interest during school, so you'd owe $10,000 at repayment. Unsubsidized loans, available regardless of need, accrue interest from the moment they're disbursed. On a $10,000 unsubsidized loan at 5%, you'd accrue about $500 in interest per year while in school. By graduation (4 years), you'd owe $12,000 if you don't pay the interest during school. Use our calculator to see how these loans impact your repayment.

A subsidized student loan, also called a direct subsidized loan, is a federal loan for undergraduates with financial need. The government covers the interest while you're in school at least half-time, during a 6-month grace period after leaving school, and during deferment. For example, if you borrow $5,000 at 4.5% interest, you won't owe any interest until repayment starts, keeping your balance at $5,000. This reduces your total cost compared to unsubsidized loans. Eligibility is determined by your FAFSA, with annual limits (e.g., $3,500 for freshmen). Our calculator can help you estimate payments for subsidized loans.

Unsubsidized loans are federal student loans available to undergraduate and graduate students, regardless of financial need. Unlike subsidized loans, interest accrues from the day the loan is disbursed. For a $10,000 unsubsidized loan at 6% interest, you'd accrue $600 annually while in school. If unpaid, this interest capitalizes (adds to the principal), so after 4 years, you'd owe $12,400 at repayment start. You can pay the interest while in school to avoid this. Use our student loan calculator to see how unsubsidized loans affect your total debt.

Yes, subsidized loans have interest, but the government pays it during specific periods: while you're in school at least half-time, during the 6-month grace period after leaving school, and during deferment. For example, a $7,000 subsidized loan at 4.5% would accrue $315 in interest annually, but you wouldn't owe this until repayment begins after the grace period. Once repayment starts, you're responsible for the interest, and over a 10-year term, you'd pay about $1,900 in interest on that $7,000 loan. Our calculator shows how this interest impacts your payments.

As of 2025, the average student loan debt for a bachelor's degree holder is around $37,000, according to recent data. This varies by school type—public university graduates average $32,000, while private university grads may owe $40,000+. Graduate students often have higher debt, averaging $70,000-$100,000, especially for professional degrees like law or medicine. For a $37,000 loan at 5% over 10 years, you'd pay about $393 monthly and $10,100 in interest. Use our calculator to estimate your own debt and repayment timeline.

To take a student loan, start by filing the FAFSA (Free Application for Federal Student Aid) to determine eligibility for federal loans like subsidized, unsubsidized, or PLUS loans. Once submitted, your school will send a financial aid offer detailing loan amounts. Accept the loans you need via your school's portal. For example, you might be offered $5,500 in federal loans for your freshman year. If federal aid isn't enough, apply for private loans through banks or lenders like Sallie Mae, which require a credit check. Always borrow only what you need—our calculator can help you estimate future payments.

Paying off student loans typically takes 10-30 years, depending on your loan amount, repayment plan, and extra payments. On the standard 10-year plan, a $30,000 loan at 5% has a $318 monthly payment, totaling $38,160 with interest. Income-driven repayment plans (e.g., PAYE, REPAYE) extend terms to 20-25 years, lowering payments but increasing total interest. For example, $30,000 at 5% on a 20-year plan might cost $198 monthly but $47,520 total. Making extra payments (e.g., $100/month) can shorten the term to 7-8 years. Use our calculator to see your payoff timeline.

To pay off student loans fast, make extra payments, refinance to a lower rate, or use the debt avalanche method (paying highest-interest loans first). For a $20,000 loan at 6% over 10 years, your payment is $222 monthly. Adding $100 monthly shortens the term to about 6 years, saving $2,500 in interest. Refinancing to 4% lowers your payment to $202, or you can keep paying $222 to finish faster. Budgeting (e.g., cutting $50/month on dining) and side hustles (e.g., earning $200/month) help. Our calculator shows how extra payments speed up repayment.

Consolidating student loans combines multiple federal loans into one Direct Consolidation Loan, simplifying repayment with a single monthly payment. You apply through the U.S. Department of Education's website after your grace period ends. For example, if you have three loans totaling $25,000 at 5%, consolidation might give you a 15-year term with a $198 monthly payment. The new rate is a weighted average of your original rates, rounded up to the nearest 1/8th percent (e.g., 5.125%). Consolidation can extend your term, lowering payments but increasing total interest. Use our calculator to compare consolidation scenarios.

Student loans use simple interest, calculated as: Interest = Principal × Rate × Time. For a $10,000 unsubsidized loan at 5% annual interest over 1 year, the interest is $10,000 × 0.05 × 1 = $500. Daily interest is $500 ÷ 365 = $1.37, so over 30 days, you'd accrue $41.10. If unpaid, this interest capitalizes, increasing your principal. Subsidized loans don't accrue interest in school, but unsubsidized loans do. Over 4 years in school, that $10,000 loan would accrue $2,000 in interest if unpaid. Our calculator automates this for your loan terms.

To save money as a student with loans, create a budget, minimize borrowing, and pay interest on unsubsidized loans while in school. For example, on a $10,000 unsubsidized loan at 6%, you'd accrue $600 yearly. Paying $50/month toward interest saves $2,400 in capitalized interest by graduation. Use free resources (e.g., library instead of buying books), cook at home (saving $100/month), and apply for scholarships (e.g., $1,000 awards). Post-graduation, choose income-driven repayment if needed, and avoid lifestyle inflation. Our calculator helps you plan loan payments to free up savings.

Repaying student loans in forbearance involves resuming payments after the forbearance period ends or making voluntary payments during forbearance to reduce interest accrual. Forbearance pauses payments, but interest still accrues on unsubsidized loans. For a $15,000 unsubsidized loan at 5%, you'd accrue $750 in interest over a 12-month forbearance. If you can, pay at least the interest ($62.50/month) to prevent capitalization. After forbearance, switch to an income-driven plan if payments are unaffordable, or refinance for a lower rate. Our calculator can model your post-forbearance payments.