How Scholarships Help Loans

If you are an undergraduate or graduate student interested in a Green Machine scholarship, here are a couple scenarios (based upon an unsubsidized loan) as to how this scholarship will positively affect your student loans:

Freshman year: borrowed $5,500
Sophomore year: borrowed $6,500
Junior and senior year: borrowed $7,500

The payback is at the end of four years.

Here is a basic breakdown for a student who just takes out unsubsidized loans for four years, one who gets a $1,000 each year and one who gets $2,000 each year. We are assuming the student will reduce the loan amount by the amount of the scholarship.

1. No scholarship: interest on the unsubsidized loan after four years is $4,505 and payments for a 10-year repayment plan is $362.56 per month.
2. $1,000 scholarship for four years: interest on the unsubsidized loan is $4,210 and the payments for a 10-year repayment plan is $313.13 per month.
3. $2,000 scholarship for four years: interest on the unsubsidized loan is $3,881 and the payments for a 10-year repayment plan is $263.32.
   

This is all based on the unsubsidized loan, since the subsidized loan does not accrue interest while the student is in school, however with all loans, the less they borrow, the less the repayment.

For more information about student loans, please visit Mason Financial Aid.