Government subsidized loans: Available to undergraduate students with financial need, your school determines how much you borrow, and U.S. Department of Education pays the interest on a subsidized loan.
Government unsubsidized loans: available to undergraduate and graduate students, there is no requirements for financial need, your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive, and you are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
Credit union loans: co-operatives that accept deposits and give out loans. They are set up by people with a common interest, such as where they live or work, and offer low-interest loans. They usually require you to prove your creditworthiness.
Bank loans: the most common form of loan capital for a business. A Bank loan provides medium or long-term finance. The bank sets the fixed period over which the loan is provided (3, 5 or 10 years), the rate of interest and the timing and amount of repayments.
I think that a Credit loan or subsidized loan would be the best because they are both flexible for a student. Subsidized loans would not accumulate interest because the government would be paying it. Credit unions have lower interest rates and are more customizable, although you have to be eligable for a loan.
Loan Amount: $5,000
Interest rate: 4.5%
Number of years: 4
Monthly payment: $114.02
Total interest paid: $472.84
Government unsubsidized loans: available to undergraduate and graduate students, there is no requirements for financial need, your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive, and you are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
Credit union loans: co-operatives that accept deposits and give out loans. They are set up by people with a common interest, such as where they live or work, and offer low-interest loans. They usually require you to prove your creditworthiness.
Bank loans: the most common form of loan capital for a business. A Bank loan provides medium or long-term finance. The bank sets the fixed period over which the loan is provided (3, 5 or 10 years), the rate of interest and the timing and amount of repayments.
I think that a Credit loan or subsidized loan would be the best because they are both flexible for a student. Subsidized loans would not accumulate interest because the government would be paying it. Credit unions have lower interest rates and are more customizable, although you have to be eligable for a loan.
Loan Amount: $5,000
Interest rate: 4.5%
Number of years: 4
Monthly payment: $114.02
Total interest paid: $472.84