This video explains the difference between subsidized and unsubsidized student loans. "Subsidized" means that the U.S. government pays the interest that accrues while the student is attending school at least half-time, in a grace period, or in deferment. Unsubsidized begin incurring interest immediately, and the interest is added to the loan's balance at the end of each period assuming the student does not pay the interest. The video provides an example to illustrate how this process (known as interest capitalization) works with an unsubsidized loan.
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Watch video The Difference between Subsidized and Unsubsidized Student Loans online without registration, duration hours minute second in high quality. This video was added by user Edspira 18 September 2016, don't forget to share it with your friends and acquaintances, it has been viewed on our site 69,336 once and liked it 1.1 thousand people.