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Students Loans: Interest for different loans explained

Millions of students each year take out student loans to help pay for their education, and it’s suggested to take out a federal loan for lower interest.

cash used for student loans

There are two types of student loans available to those who need them.

These are subsidized and unsubsidized.

Anyone can get subsidized, but getting subsidized requires qualification.


When you need to start paying them back

To get this type, you must show you have financial need.

This is proven by filling out a FAFSA.

Subsidized are available to students enrolled as undergrads at least half time.

Unsubsidized are for any student enrolled half time, including graduate and professional degree students.


What are student loans and their interest rates right now?

Right now the fixed annual percentage rate for subsidized loans is 3.73% for any loan given between July 1, 2021 and June 30, 2022.

The fixed rate is the same for unsubsidized loans, but it increases for other loans.

For graduate or professional degrees, unsubsidized loans are 5.28% from July 1, 2021, through June 30, 2022.

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