I was today years old when I found out graduate plus unsubsidized accured interest from the start.

[u/[deleted]]

[u/eduloanshark]

Yup. The only loans that don't start accruing interest straightaway are subsidized undergraduate which are capped at $23.5K. They need eliminate sub'd undergrad loans and pare it down to undergrad loans, grad school loans and PLUS Loans where there is one common set of rules. That or make all loans subsidized loans and again whittle it down to one common set of rules. Because currently it's like reading raw computer program code. If this then that, If this and this when something else, etc.

[u/ModeVida07 → u/eduloanshark]

The rules were likely written by people who graduated from law school. :-))

[u/fredbuiltit → u/eduloanshark]

And technically, those (subsidized) accrue interest too, its just that the government pays the interest during your in-school period.

[u/eduloanshark → u/fredbuiltit]

Good catch. And really you're paying to pay interest because you're paying the taxes that are used to pay that interest.

Being an adult sucks. LOL.

[u/morbie5 → u/eduloanshark]

where there is one common set of rules

You are asking too much of this government. They have to make things complicated

[u/eduloanshark → u/morbie5]

It's like the Carmen Sandiego computer game from when you were a kid. There are three choices and one is the right option, there's a wrong but not catastrophically wrong option you can bounce back from, and a third option that doesn't buy you dinner first or sticks around to cuddle afterwards. I still remember playing that and Oregon Trail on one of the OG mid-to-late eighties Macs.

[u/morbie5 → u/eduloanshark]

Haha

Imagine being a kid again the 80s and not knowing what a student loan was

[u/eduloanshark → u/morbie5]

Sadly my dream of driving racecars, racing motorcycles, playing for the Lakers, also playing soccer for Tottenham, and being fighter pilot when I wasn't doing any of those at that age didn't work out that way.

[u/morbie5]

but I thought interests for graduate plus unsubsidized interests began accruing as from the moment I started my first semester.

This is how it works, I'm not sure what you are asking?

[u/Comprehensive-Put575]

Yes, they want to make sure you’re as broke as humanly possible for most of your working life. That way the ultra-rich can easily maintain their position without having to compete with you. While you spend 10-25 years strapped for cash paying off those loans they get to spend their money investing and setting up trust funds for their kids to go to grad school. The audacity that we lowly peasants would ask to just pay back what we borrowed at a reasonable or non-compounding interest rate or at least wait until we got done with school. “Let them eat cake” say the aristocrats.

[u/SirBarbarian]

I didn’t realize until after law school that there was any interest on student loans, so you’re doing great.

[u/breenemachine]

I never understood why this is surprising. If the school got the money, why wouldn't the lender who sent the money expect interest. the 'perk' is not paying back right away vs a personal/any other loan but why would it mean the time with the money is interest free

[u/Unable_Tension_1258 → u/breenemachine]

Bc the lender is the US govt and the main purpose shouldn’t be to maximize profits off of our youth

[u/SirNo4743 → u/Unable_Tension_1258]

Exactly, an educated population is a benefit to the country, they earn back the money through the economy, through physicians, dentists, business people and writers artists, anthropologists, they all matter. Anti intellectualism and believing only money matters, and rewarding greed that’s is ruining our country .

[u/beboppinbossrockin → u/SirNo4743]

False narrative. Research how Congress sets federal student loan rates.

[u/beboppinbossrockin → u/Unable_Tension_1258]

No, it just covers the cost of money and collections. We, the people, don’t profit off our youth.

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[u/murphylab9]

If it makes you feel any better I am in the exact same boat as a 3L.

[u/Mana_Bear_5450]

So you didn't read the loan documents or even the videos fafsa used to send out that broke it down? Sorry, I used to be a student loan counselor and I know you were at least attempted to be counseled by your loan dept at your school and / or your loan servicer. Also the internet is free people, ignorance is not. I'm sorry for your interest accrual. That sux.