Question about interest on student loans?
Asked by TesoroIf I take out a $50,000 student loan at 5%, for example, and I do not have to start paying it back when I graduate which is 4 years from now, for example, then does interest accumulate in those 4 years? In other words, say that I hit the lottery on the first day that I have to start paying back the loan, 4 years from now. Then will I be paying back $50,000 OR will I be paying back $50,000 PLUS 4 years of interest at 5%? I know that after 4 years interest will accumulate for every year that I don't pay, but i'm not sure if it does for the 4 years that I don't have to pay. Thanks.
Favorite Answer
Answered by magpie40353
Depends on the type of loan. You can either have a subsidized or unsubsidized. The unsubsidized loan will start accumulating interest right away. The other will start accumulating interest x amount of months after graduation
Depends on the type of loan. You can either have a subsidized or unsubsidized. The unsubsidized loan will start accumulating interest right away. The other will start accumulating interest x amount of months after graduation
