Unsubsidized Loans for College: How to Calculate The Cost

When one of my sons applied to college, I learned that even if I’ve saved enough to pay for tuition and related expenses, a college-bound child is still eligible for a federal student loan. Federal Direct Unsubsidized Loans are available to students regardless of financial need.

Rather than cash out investments to pay all of our college bills, my child may decide to take a student loan to cover extra expenses associated with attending an out-of-state university. But before accepting the loan, it makes sense to review the costs of borrowing.