general questions

[wise146]

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1) How is the interest rate determined for sub/unsub. loans? Does the
rate vary from lender to lender?

2) Do subsidized loans get deferred for a residency? How about
unsubsidized loans??

3) Is the interest rate the same for subsidized and unsubsidized loans?

Thanks.

 

[tlew12778]

1) How is the interest rate determined for sub/unsub. loans? Does the
rate vary from lender to lender?

THe only diff is that the US govt pays interest on your subsidized loan while you are in school. Your lender will determine your interest rate. Yes, it varies from lender to lender.

2) Do subsidized loans get deferred for a residency? How about
unsubsidized loans??

You can defer all loans. You should check with your lender for further details.

3) Is the interest rate the same for subsidized and unsubsidized loans?

I believe so. Your interest is determined by prime + x (determined by your lender). As I said before the only diff. btwn subsidized and unsubsidized is who pays interest while you are in school.

 

[mpp]

This information is incorrect. The loan rate for unsubsidized Stafford loans is fixed by the government and changes once per year and is the same for every lender. The interest rate for loans for the 2004-2005 school year will be 2.77%. Unsubsidized loans do not accrue interest while you are in school. When in repayment, the interest rate is the same for unsubsidized/subsidized. Perkins loans are fixed at 5% and the interest is subsidized while you are in school year. Private loans will vary by lender and are never subsidized.

Deferment for Stafford and Perkins loans depends on a number of factors including the amount you owe and your loan payment amount. It is not guaranteed that you will get a loan deferment during residency. Deferment is a maximum of 3 years (even though some residencies are longer than that). There are other options such as forebearance if your income precludes you from making loan payments. During deferment, subsidized loans continue to be subsidized but unsubsidized loans will accrue interest. Some private loans cannot be deferred (these are dependent on the lender.