thoughts on unsubsidized loans, do you think they are good or bad?

Answer 1

Some of your respondents appear not to know the difference between subsidized and unsubsidized loans. All loans accrue interest, but a subsidized loan's interest is paid by the government while you are in school, an unsubsidized loan's interest is paid by you, one way or the other. If you capitalize the interest you end up paying back more money in the long run because you pay interest on the interest, so it is best to pay the interest as you are billed, usually a small amount quarterly, while in school.

As to whether it is good or bad, well that rather depends. Are you a serious student who plans to complete your education in a reasonable length of time (4 to 5 years) and need it to pay your charges to the school? Or are you borrowing because you want to live at school rather than at home because your college of choice is too far to commute to? Are you unable to avail yourself of your college's payment plan to any extent? If this is the case, and an unsubsidized loan is your only option, then, yes, it can be a good deal.

If you plan to go away to school to live your own life and party, or do not have the motivation to get yourself to classes and figure you need to find yourself before you decide to do when you grow up, student loans can end up being very costly albatrosses around your neck and a bad deal. The decision here is up to you to make the best educational and fiscal choices for yourself.

Answer 2

Its not the ideal way to pay for school, but if the other option is to not go to school, private/unsubsidized loans are great! A college education is one of the best investments a young person can possibly make.

Answer 3

If it can help you pay for the cost of tuition it is good. No interest what more can you ask for from a loan

Answer 4

they are fantastic! Free money with no interest! Heck yah!