Yes, you should generally accept both if needed, but always accept subsidized loans first, as the government pays the interest while you're in school, during your grace period, and during deferment, saving you significant money compared to unsubsidized loans where interest accrues from day one. Accept only what you need after grants and scholarships, then take subsidized, then unsubsidized, understanding unsubsidized loans cost more due to interest capitalization.
Accept the loans with the most favorable terms and conditions; usually, that includes federal student loans. You don't have to accept all the aid you're offered. Learn about types of financial aid. If you decide to accept loans, follow your school's instructions.
Subsidized loans are generally better because the government pays the interest while you're in school, during grace periods, and on deferment, saving you money; unsubsidized loans accrue interest from day one, increasing your total cost, but are available to more students and graduate borrowers, making them a necessary option when subsidized loans aren't enough. Always accept subsidized loans first before taking unsubsidized loans to minimize debt, as unsubsidized interest capitalizes (adds to principal) if not paid.
If you have both unsubsidized and subsidized student loans with similar interest rates, it often makes sense to pay off your unsubsidized loans first. Unsubsidized student loans accrue interest from the day they're disbursed.
If it is prior to the semester beginning and before you aid disburses you can cancel the loan totally fine. How you do that though will be dependent on how your school handles that. If the loan has been disbursed and you've collected the funds, you have 120 days to cancel and return some or all of it.
You can accept student loans and not use them, but you'll still be responsible for paying them back with interest. If you find you don't need the loans, you can cancel them within 120 days of loan disbursement.
The #1 most common FAFSA mistake is leaving fields blank, followed closely by name/Social Security Number mismatches, but other major errors include incorrect marital/parental info, not reading questions carefully (especially "you" vs. "parent"), and filing late or not at all. You must complete all questions, entering '0' or 'N/A' if applicable, use exact legal names, and ensure accurate SSNs to avoid delays or rejections, with many sources highlighting the importance of filing on time for maximum aid.
If you have Subsidized loans in your financial aid package, accept and submit the fall Subsidized loan first. After the confirmation screen, accept and submit the fall Unsubsidized loan next. Do not submit all acceptances at one time and do not touch the spring loans.
50% of your budget goes to necessities: rent, utilities, transportation, insurance, groceries, etc. 30% goes to wants: dining out, shopping, gym membership, entertainment, etc. 20% goes towards savings and debt repayment: student loans, auto loans, credit cards, emergency savings, etc.
The best way to pay off student loans involves a combination of strategies: pay more than the minimum, use the avalanche method (highest interest first) for savings or snowball method (smallest balance first) for motivation, automate payments to save on interest, consider refinancing for lower rates (federal loans lose benefits), and explore federal income-driven plans (IDRs) or Public Service Loan Forgiveness (PSLF) if eligible. Budgeting, increasing income, and tackling extra payments with bonuses or refunds also significantly speed up repayment.
Interest on unsubsidized student loans begins accruing as soon as the loan is disbursed, and you're responsible for paying it. If you leave school without making any interest payments, the total accrued interest gets added to your loan principal, or capitalized, and starts accruing interest.
Fixed-rate mortgages are the most popular choice for homeowners—and with good reason. These loans offer consistent monthly payments, making them ideal for long-term budgeting and financial planning.
There is no income that is too high to file a FAFSA. No matter how much you make, you can always submit a FAFSA. Eligibility for need-based financial aid increases as the cost of attendance increases, so even a wealthy student might qualify for financial aid at a higher-cost college.
Among those who do borrow, the average debt at graduation is $27,420 — or $6,855 for each year of a four-year degree at a public university. Recent college graduates earn $24,000 more annually than peers of the same age whose highest degree is a high school diploma.
It's better to accept subsidized loans first because the U.S. Department of Education pays the interest while you're in school (at least half-time), during grace periods, and during deferment, preventing the loan balance from growing; unsubsidized loans, however, start accruing interest immediately, making them more expensive over time, so prioritizing subsidized funds minimizes overall debt.
Subsidized loans are generally better because the government pays the interest while you're in school, during grace periods, and on deferment, saving you money; unsubsidized loans accrue interest from day one, increasing your total cost, but are available to more students and graduate borrowers, making them a necessary option when subsidized loans aren't enough. Always accept subsidized loans first before taking unsubsidized loans to minimize debt, as unsubsidized interest capitalizes (adds to principal) if not paid.
Remember: any unused student loan money is still part of your loan and must be repaid. You are responsible for paying interest on the unused funds, even if you don't use them at the original disbursement date. Use our Loan Calculator to determine the monthly loan payment and total payments on your student loans.
Failing to use your legal name: Your name must be listed on your FAFSA as it appears on your Social Security card. Don't enter nicknames or other variations on your name. Entering the wrong address: Don't enter a temporary campus or summer address as your permanent address.
The "7-year rule" for student loans generally refers to when negative marks, like defaults, are removed from your credit report (around 7 years after the first missed payment or default date for federal loans, 7.5 years for private loans), but the debt itself doesn't disappear and must be paid off; it's also a benchmark in bankruptcy proceedings where federal loans can become dischargeable after 7 years from when payments were due, though proving "undue hardship" is required and difficult.