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    Total Direct {CITY} Unsubsidized: $10,500 (outstanding principal), $1,400 (outstanding interest) Total Direct {CITY} Subsidized: $13,000 (outstanding principal), $0 interest. I got interest of $1,140 from 2011 school year ($6,500 unsubsidized loan). And in 2012 I took only $2,000 in unsubsidized, and my interest was just $200. That's a big difference. Question 1: Why such a big difference? Question 2: Will that $1,400 interest adds up after I graduate and time for me to start paying? I heard some people said to pay that interest ahead if you have money. Question 3: Should I be alarmed by that word "outstanding"? silly question. Note: I round those number to nearest tenth. Fall 2011 was when I was freshmen

    1) Unsubsidized loans accrue interest daily from the day they're issued. The daily interest amount is (principal) x (annual interest rate) / 365 days Assuming your interest rate is 6.8%: $6500 * 0.068 / 365 = $1.21/day $2000 * 0.068 / 365 = $0.37/day You've had the $6500 loan for approximately 3 years (1095 days), and the $2000 loan for 2 years (730 days) $1.21/day * 1095 days = $1300 $0.37/day * 730 days = $270 See? It's reasonable - one of your loans not only has a larger principal, but it has also been accruing interest for a full additional year over the other one. So that's the answer to #1 - thats why there's a big difference. 2) Yes, you will pay all of that back. The interest will keep growing every day even after you graduate and start paying. Also, 6 months after you graduate, all of that unpaid interest is added to the principal - so instead of $6500 times the daily interest rate giving you $1.21 in interest every day, if it capitalized today, your daily interest accrued would be ($6500+$1140) * 0.068 / 365 = $1.42/day. It's good to pay the interest if you can right now. 3) "Outstanding" just means "hasn't been paid back yet"

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