Student Loans 101 Part 1: COLLEGE DECISIONS, UNSUBSIDIZED VS. SUBSIDIZED LOANS, HOW MUCH TO BORROW

[@damanddavis1587]

In my college experience (as a returning student) you are not required to give any parental finance info if you are over the age of 24. This might have been a special situation for my case but seems to be worth mentioning. GREAT ADVISE btw. Answered all the questions I came in looking for :)

[@PersonalFinancewithLeila]

I'm pinning your comment because this is important!! In the video I am uploading today I actually talk about this. I'm sure reporting your own income helps you get more aid, depending on your financial situation of course. Thanks for commenting this!!

[@Ονομαεπίθετο-ξ1υ]

@@PersonalFinancewithLeila what if your over the age of 24 and have no income but want to apply to colleges ?

[@PersonalFinancewithLeila]

@@Ονομαεπίθετο-ξ1υ Still go through Fafsa!! And you will qualify for grants and/or loans. Still try to avoid debt if possible so you can apply to scholarships as well.

[@Ονομαεπίθετο-ξ1υ]

@@PersonalFinancewithLeila thank you

[@davidwright9154]

Awesome Video! One thing though Unsubsidized Loans has a year-to-year compounding interest rate. So if you took out 5000 USD on unsubsidized loans and had a 2% interest rate, you would owe 5000 + 100 USD in interest that year. If the interest wasn't paid for that year, then the following year you would have to pay 5100 + 102 USD in interest the next year and so on.

[@kevinpadama8354]

I needed to watch this kind of video back in 2014 😭

[@KenanGrace]

Those student loan interest rates are a killer! I swear you and I have the same upload schedule! I just uploaded as well. You are so right the always offered me more than I needed and I always took it smh because I didn’t know what I know now! This is an important video!

[@TheHerbalYogi_]

Beautiful advise! Thank you for all of your time and effort put into making this video Sis.

[@PersonalFinancewithLeila]

Thank you!! 😊

[@ranoahholcomb6505]

Thank you so much for making this so helpful, simple, and easy to understand!

[@ivonnel617]

Thank you so much for making this video. You explained it so clearly and I know what I need to do now.

[@PersonalFinancewithLeila]

Glad it helped!! Thank you for watching 😊

[@kabasulaiman1970]

i cant even find a word to describe you.... you are so intelligent

[@PersonalFinancewithLeila]

Thank you!

[@djaziko457]

Helpful information. Thank you for the video, it was extremely helpful and i'll be referencing back to it.

[@PersonalFinancewithLeila]

Good to know, thank you!!

[@Artist.359.]

I am so glad I took a year off after graduating high school. There is so much pressure on high schoolers to attend college these days because people think its "the only way to be successful". It honestly made me not want to go even more. A year later I decided University was not for me, so I went to a community college for two years. I originally wanted to go into nursing but changed my mind halfway through, so I just got my generals. After racking up $15,000 for 2 years of college not including the interest thst accrued while i was still in school, I thought that a degree is pointless unless I pick a career that I actually want to do for the rest of my life. And it needs to pay the bills and not be too competitive. I also don't want a degree that is completely useless like gender studies.

[@cassady4940]

Thank you so much for this!!!

[@nitdawg007]

Thank you.

[@jenniferwest7771]

Thank you for this valuable information.

[@PersonalFinancewithLeila]

Thank you for watching!

[@barbdennis7979]

Thank you

[@4XFighters]

How exactly do you take you a federal loan? Does only the school offer these type of loans or can you sign up for it? I am approved for the Fafsa

[@claireyabut7601]

Do you have any majors in mind that will create a profitable income after college?

[@nicholasrios565]

there's more to life than just money

[@claireyabut7601]

@@nicholasrios565 I know that, but you can't deny that having enough money to provide for yourself is not likable. Money can provide you leisure, and it can alleviate your stress. I am not going to go to college not majoring in something that can make me money. If I do that then I am just wasting my time, and money.

[@jacquelinepuga8315]

@@claireyabut7601 A lot of the Tech/ STEM majors make good money. Anything in medicine too. Nursing, engineering, computer science (working in IT) those are all profitable majors. You can always work backwards, find a job description for your ideal job/pay and see what requirements they have i.e. what kind of degree they prefer, how many years of experience, what certificates you might need. There are many jobs that only require certificates and google has many course that you can take, many of which are free. I wish someone would have talked to me about community college and trade schools. There are plumbers & electricians and truck mechanics making much more than me and some of my friends that went to college. I've even heard of garbage collectors making 100K here in CA. There really are lots of trades that are looked down upon for being blue collar but pay very well and I wish someone would have told me that. Firemen also make 100K & about 150K if you're a fireman paramedic(and they pay for the paramedic school once you're in)

[@greenapple6404]

Idek how these loans work. From what I understand, undergrads can only take out $5500 in the first year, and that's via FAFSA. Everything else requires a cosigner because 'private' student loans. IDK how people go about obtaining that cosigner. Is there a whole process I'm missing???

[@PersonalFinancewithLeila]

Undergrads can borrow $12,500 per year ($6,250 per semester)!

[@greenapple6404]

@@PersonalFinancewithLeila were you an independent? I dont think I can take that much out in my first year. Also, when the FAFSA website says something along the lines of "your college will send you a finacial aid offer which may include Federal student loans" is the federal student loan specifically the Direct sub/unsub loan? Im hoping that the school can offer other forms of loans that arent PLUS loans and that are larger than just the sub/unsub loan... ?

[@PersonalFinancewithLeila]

@@greenapple6404 during undergrad I was not independent. I didn't take out the full amount all 4 years of undergrad because I also had a scholarship and some was paid in cash. I'm not 100% on the answer to your question but I'm pretty sure it's just sub/unsub loans. Otherwise you would have to get the Parent Plus loans or private loans

[@wahidsuha7128]

stay away from private loan. Period

[@PersonalFinancewithLeila]

Definitely! I'm so glad I didn't get into those 🤦‍♀️

[@Levi-xg1fz]

So what will happen if I just take out whats necessary to pay for the tuition in the semester? Can I say no, I don't want the refund and that refund money will just stay in the loan so I don't have to pay it back?

[@PersonalFinancewithLeila]

Good question! Yes, you get to decide how much to borrow. You should be able to see how much it will cost you and then decide what you need. If you accidently borrow too much you'll get a refund and you can just hold onto it (or pay it back right away especially if it's accruing interest)

[@Levi-xg1fz]

@@PersonalFinancewithLeila Okay awesome, thanks for clarifying that and making it easier to understand.

[@maryjane7043]

so Direct Subsidized Loan has to be returned or aid back?

[@PersonalFinancewithLeila]

Always paid back, but subsidized loans don't accrue interest while you are in school! If you borrow $2,000 in subsidized, you will graduate with $2,000. After 6 months interest will start accruing. If you borrow $2,000 in unsubsidized, you will graduate with $2,000+interest accrued (so $2,600 for example)

[@paulvera3209]

Any advise for graduate loans, grants or scholarships?

[@PersonalFinancewithLeila]

I'll be uploading a video on Friday for all that! 😊

[@bautistas94]

Yes please😭😭😭

[@jazzyjennshighway]

@@PersonalFinancewithLeilawhich vid title is this so I can watch I was told I’m not eligible for subsidized loans bc I’m a grad student. Only unsubsidized 🤷🏽‍♀️

[@TedIsHere2]

I know this is directed at undergards but I've found some useful info from this for my masters. For undergrad I did two years at community college then finished at a university (i commuted). Finished undergrad with $0 in student debt

[@PersonalFinancewithLeila]

Good to know! And good job for doing community college first, I did the complete opposite by living on a state University campus for 2 years 😂 Will you be able to graduate with your Master's debt free??

[@liyahlang949]

Do federal student loans only come through FAFSA ? I’m so confused on how to pay for school. I don’t have too much help on this matter. It’s really frustrating me. I have gotten a discover student loan paper in the mail saying they will pay up to 100% of tuition. I’m guessing this is a private loan since it’s coming from a financial institution. Would you recommend this ?

[@PersonalFinancewithLeila]

Yes federal will only be through fafsa. Everything else is either a personal loan or a private loan! If you must take out loans I would only go with Federal loans if you can, not the Discover. Do you have any specific questions? I will try my best to help!

[@liyahlang949]

@@PersonalFinancewithLeila have you personally tried discover? What would theoretically happen if I took their loan? Lol I just don’t want to get myself in a bunch 😂

[@PersonalFinancewithLeila]

@@liyahlang949 I have not used Discover! The main thing is that the interest rates may be higher and anything that involves government won't apply. For example, currently federal student loans are in forbearance, private loans are not. And I'm not sure yet, but if Biden were to pass student loan forgiveness, private loans may not fall under that either. Check out this page: www.discover.com/student-loans/compare-loans

[@liyahlang949]

@@PersonalFinancewithLeila thank you for the information, and advice. What other options are there for loans and grants that you recommended for undergrad students?

[@serginho8556]

Very informative video. Thanks!

[@PersonalFinancewithLeila]

Thanks for watching!

[@rickt1866]

This is one of the most helpful videos I have come across. I would like to thank you for taking the time to share this info.

[@PersonalFinancewithLeila]

Yay! Thank you so much!!

[@roneeshah9032]

Hi how are you! I wish I could call you & ask you all the questions I have lol. This video was very informative. Thank you so much !!

[@PersonalFinancewithLeila]

Please email me with any questions!! We can have a Zoom call as well (for free lol)!

[@yup.itsadilene9258]

My financial aid got canceled, can I still get my unsub loan?

[@PersonalFinancewithLeila]

I apologize for my late response, but which financial aid got canceled? Scholarship? Grants? You should still be able to take out a loan...be sure it's a federal loan!

[@kenny3675]

Hi, so are students able to take out extra loans for living expenses? I want to go to trade school it’d require me to move and get my own place I was hoping that I could just take out loans for an Apt but I am unsure

[@PersonalFinancewithLeila]

It won't say that it's a loan for living expenses, but yes...if you take out a larger loan than you need then you can use it for rent/food. That is what I did and I suggest trying to avoid it if possible lol Take out the least amount possible!

[@kenny3675]

Thank you!!!

[@jenniferdiaz7237]

omg thank you so much for this video . I was wondering how would I know how much to take out ? So I don’t end up borrowing more than I need ?

[@PersonalFinancewithLeila]

You're welcome, thank you for watching! Your school website should show how much you owe for the semester. This depends on how many classes you're taking, scholarships, grants, and the cost of your school in general. From there you can select the total amount you would like to borrow

[@ggfien9373]

They blew it on a computer?? Ummm that's kinda a need.

[@pspwilliams]

So it not good to accept both ? And shat if you use a lil bit and pay Bach what you didn’t use ?

[@PersonalFinancewithLeila]

I accepted both when I was in college, just be aware that one is accruing interest even while you are in school. So it's best to avoid that if possible. Try to also avoid borrowing too much, but yes you could just pay back what you don't use asap!

[@pspwilliams]

Personal Finance with Leila how do I pay the interest? Also

[@PersonalFinancewithLeila]

@@pspwilliams it will be included in your account as well. You'll have to create an account with your loan provider and login to make payments. You can find who your account is with on studentaid.gov

[@karlaabad5813]

So you have to make payment while your in college with the one that acquires interest

[@PersonalFinancewithLeila]

@@karlaabad5813 No you don't have to pay while in college! Just be aware that some loans may be accruing interest while you are in school (unsubsidized).

[@Pepperjack-un5rl]

🍂I’m a returning student and I’m sOo confused 😕. I’m completely on my own finically, so I applied , got accepted into a 4 year university in Nashville, so my total cost with aid applied is $4.8k for the fall. My advisor told me to accept my student loan so my total cost out of pocket will be $1.8k a semester (or 3.6k a year) I accepted my subsidized loan that’s $3.5k but I literally have no idea how any of this works… my unsubsidized loan is $6k and I’m so nervous to even take that out because I don’t know if that’s to much for my balance, and I want to finish college successfully this time without worrying about the debt. Any advice? I called my FAO and they’re not really much help 😔 THANK YOU for the video 🌸 it was very helpful especially about going to school for education and not for the aesthetic lol 🌸

[@PersonalFinancewithLeila]

Will you be working throughout school? Unsubsidized will be accruing interest while you're still in school, so if you can at least pay a bit of that down while you're still in school it will help. Have a plan when you graduate and be sure you know how much debt you expect to graduate with! If you can afford to pay any of it now it will save you a lot of money.

[@Pepperjack-un5rl]

🌺🌼Yes lol I’ll be working at an amazon warehouse since that’s the only job (that I know of) that has flexible work shift. (Which means i can work any day any time as long as I work at least 20hrs a month but up to 240hrs a month) so that I can make sure I have a successful time at college. But thank u so much for the advice 🌸🌼