Loan Project

I start out by taking an unsubsidized loan out for $20,000 over four years.  An unsubsidized loan mean that I do not qualify for a subsidized loan and must start paying off my loan while attending college, not after I graduate, which is possible with a subsidized loan.  Now $20,000 over four years is $5,000 per year, with an interest rate of 5.41% added on top of that.  So after the first year only, I already owe $270 more than I borrowed due to interest.  After my freshmen year I keep adding $5,000 for my sophomore, Junior, and Senior years, all the while maintaining my interest rate throughout.  At the end of my Senior year I will have owed a total of $22,825.34, which I will have to pay back until it is payed off in full.