Word bank: first-year · interest · private · studentaid · Unsubsidized

1. Federal first, last.
2. Subsidized: no interest in school. : interest from day one.
3. Capitalized grows your balance.
4. Borrow less than your expected salary.
5. Rules change — check .gov.

1. 1. What's a key difference between subsidized and unsubsidized federal loans?

   • A. Unsubsidized loans don't charge interest.
   • B. With subsidized loans, the government pays interest while you're in school at least half-time.
   • C. Subsidized loans must be repaid immediately.
   • D. There's no difference.

2. You're choosing between a federal loan and a private loan for the same amount.

   2. Why do many experts suggest federal loans first?

   • A. Federal loans offer fixed rates, borrower protections, and repayment options private loans often don't.
   • B. Federal loans never need to be repaid.
   • C. Private loans are illegal.
   • D. Federal loans always have higher rates.

3. 3. Capitalized interest is added to your loan balance, so you then pay interest on it.

   True/False

1. 1. You borrow $5,000 in unsubsidized loans at 6% and make no payments during four years of school. Using simple interest, how much interest builds up, and what's the balance if it capitalizes?

2. 2. Should you use federal or private student loans first? Why?

1. 1. How would you decide how much is too much to borrow for college?

2. 2. Should colleges be required to show expected graduate salaries next to their prices?