Subsidised against unsubsidised
Subsidized — no interest while studying gives $306.99. Unsubsidized — interest builds from day one gives $397.20 — a difference of $90.21 more (+29.4%).
Same amount, same rate, same term. The gap is four and a half years of interest charged before the first payment is due.
| Input | Subsidized — no interest while studying | Unsubsidized — interest builds from day one |
|---|---|---|
| Amount borrowed(usd) | 27,000 | 27,000 |
| Interest rate(percent) | 6.53 | 6.53 |
| Origination fee(percent) | 1.057 | 1.057 |
| Loan type | Subsidized — no interest while studying | Unsubsidized — interest builds from day one |
| Years still studying(years) | 4 | 4 |
| Grace period after leaving(months) | 6 | 6 |
| Repayment term(years) | 10 | 10 |
| Monthly payment | $306.99 | $397.20 |
Every figure, both ways
| Step | Subsidized — no interest while studying | Unsubsidized — interest builds from day one | Difference |
|---|---|---|---|
| Origination fee | 285.39 | 285.39 | 0 |
| What actually reaches the school | 26,714.61 | 26,714.61 | 0 |
| Interest built up before the first payment | 0 | 7,933.95 | +7,933.95 |
| Balance when repayment starts | 27,000 | 34,933.95 | +7,933.95 |
| Monthly payment | 306.99 | 397.2 | +90.21 |
| Total repaid | 36,839.02 | 47,664.17 | +10,825.15 |
| Total interest | 9,839.02 | 20,664.17 | +10,825.15 |
| Repaid per dollar received | 1.38 | 1.78 | +0.41 |
| Interest a month while you are still studying | 146.92 | 146.92 | 0 |
| Salary that keeps the payment under 8% of gross pay | 46,048.77 | 59,580.21 | +13,531.43 |
Questions people actually ask
- Does lowering loan type change the answer in proportion?
- The two sides differ by 29.4% in the answer. Read the step table below to see which line moves and which does not — that is where a formula stops being a black box.
- What is held constant between the two columns?
- Everything except loan type: amount borrowed, interest rate, origination fee, years still studying, grace period after leaving, repayment term. That is what makes the difference attributable — change two things at once and neither column tells you which one moved the answer.
- Can I compare my own two numbers?
- Yes, from the address bar: add ?a.loan_type=… and &b.loan_type=… to set each side, and a parameter without a prefix sets both at once. The page is computed per request, so any pair works — these two are only the ones worth a link.
Change either side by adding query parameters — ?a.loan_type=… and b.loan_type=…. A parameter without a prefix sets both sides at once. Source: Federal Student Aid — interest rates and fees, Federal Student Aid — repayment plans, CFPB — student loans