Developed and Developing Nations

Developed and Developing Nations Economic Disparity between Developed and Developing Nations Home›Economics Posts›Economic Disparity between Developed and Developing Nations Economics PostsIntroductionEconomic disparity between third world countries and developed nation has been an issue that has raised great concern in the global market for the past few decades. A lot of researches have been done pertaining to this issue with the aim of shading more light so that to contain it from spreading.    According to a report released by World Developmental Report (1999) indicates that also economic indicators reaffirm the economic gap between the affluent and the deprived is a widening at an alarming rate that unless strategic measures are taken to address the issue, the realization of millennium goals and attainment of vision 2030 would remain an illusion in people’s mind.Comparing the per capita income of developing nations in relation to that of developed nations indicates a very large margin. In respect to a re cent report released by World Bank (2010) it states that the per capita income between effluent nations and developing nations has increased by almost 400 %. For instance, Switzerland being a developed nation has a per capita income of about $40,000 which is about 400 times that of Ethiopia which has a per capita income of about $100.In most of the developing nation the living standards of the people is very low compared to the developed nations. Most of the people have no access to education, health care facilities, high population growth rate, high level of poverty and high mortality, just to mention but a few. It is evident enough that about 1.4 billion people in the world live below $1.25 daily. This is below the poverty line according to the World Bank Estimates of (2010).Consequently, poverty line ranges from $1.25 to about $2.00 depending on the country in question. In Kenya about 50% of the entire population lives on less than $1.00 a day, and about 70% of the population on less than $2.00.However, comparing Kenya’s position and Zimbabwe level, it is just dramatic in the sense that about 80% of Zimbabwe population lives less than $0.5 daily due to high level of poverty and inflation in the country.On the other the hand people in the developed nations have a high standard of living with access to good education, health facilities and high per capita income that increases their purchasing power compared to their counterparts in developing nations. But this does not mean that there is no economic disparity among the people living in developed nations. For example, United States of American has the highest income disparity between the poor and the rich. It is estimated that on average the rich earns approximately $94,000 whereas the deprived persons earns only about $600 (Barro, 2000, 56). This is clear indicator that economic disparity manifests itself even in the developed nations.Another issue that has substantially contributed to widening of economic gap between the rich and the poor is the devastating inequality that does exist in a nation or state. Most of the national resources rest on the hands of rulers who represent a small portion of the entire population. This in turn means that the larger population has to share the remaining limited resources in small units thus increasing the economic gap between the two parties. For instance, in South Africa about 20% of the population controls over 70% of the nation’s wealth whereas in Brazil 10% of the population controls 50% of the national wealthy (Ravallion, 2005, 62).But at this point we would like to discuss the confounding factors that contributed to high economic disparity that exists between developing and developed nations. The problems that have made third world countries to lag behind in economic development do not emanate from the social conditions that prevail in the society but they are imposed to them by developed nations (Danny, 1997, 33). As much we can say that globalization has helped in increasing economic growth global through trade and commerce, it has also contributed immensely on economic disparity between the affluent and deprived nations.Developed nations have taken the advantage of globalization to exploit developing nation by formulating policies that are inclined to their favour in return. They also use tariffs and non tariffs measures to either encourage or discourage trade and commerce with other nations. Those goods and services that are manufactured from third world countries are heavily taxed compared to those one from developed nations.  For instance, the tax that is charged on textile products manufactured in Africa and some parts of Asia is four times more than the goods manufactured from the developed nations.This in turn affects the availability of market of these products hence leading to collapsing of companies manufacturing the goods. Most of the developing nations are agricultural based in the sense that they pro duce raw materials that are required by developing nations to manufacture or process products. The developed nations buy the raw materials at a cheap price and after processing the products they transport the manufactured goods back to developing nations for marketing where they sell at a high price compared to the production cost.Dumping is another issue that has contributed to the current state of economic disparity between the developed and developing nations. The developing nations have formed the greatest market share where developed nations can sell their products at profitable prices (Todaro, 2003, 44). They sell their products at a lower cost than the locally produced goods and services that in turn attract more consumers thus increasing the likelihood of these local companies to collapse as a result of lack of market. Most people would prefer to purchase goods from developed nations as they have a conception that developed nations are more civilised than developing nations hence depriving local goods market. A good example is the importation of second hands clothes from developed nations that has led to collapse of textile industries in most nations in Africa.In conclusion the gap between the rich and the poor will continue to widening unless suitable measures are placed in position to contain the situation. Developed nations should be fair on the way they form policies and laws pertaining to international trade that will bear mutual benefits to both of them rather exploiting them. Unless we all join hands to curb the situation the attainment of vision 2030 and realization of millennium goals would remain a dream in the minds of many people.

Kobe Bryant Simply the Best Free Essay Example, 1250 words

Lakers coach Phil Jackson said after the game, â€Å"I have seen a few 60 point ballgames in my time, but none of them had been done by the third quarter† (Associated Press). Kobe Bryant is one the best all around players in the game of basketball. He has mastered all aspects of the game of basketball. As a score he can play the post, shoot the three, excellent midrange jump shot, can drive, get to the line, and has unlimited range. It is not uncommon for Kobe to hit dozens of 30 foot three points during an NBA season. The man has incredible athletic ability which he showed his first season in the league when he won the Slam Dunk contest. Kobe Bryant every year is on the leading rebound and assists producers out the shooting guard position. Last year Kobe was ranked 3rd and 4th in the league in rebounding and assists among shooting guards (Espn). Kobe Bryant controls the tempo of the game. He drawls a lot of fouls on the opposite team defenders which allows him to get to the foul stripe over ten times per ballgame while at the same time getting a lot of players in foul trouble putting them in the bench. We will write a custom essay sample on Kobe Bryant: Simply the Best or any topic specifically for you Only $17.96 $11.86/pageorder now Kobe Bryant plays both sides of the game. He is a lock down defender that is assigned to guard the other team’s best player. He can play the passing lanes well and is a vocal leader that directs a team’s defensive scheme. Last year Kobe Bryant was named to the all NBA defensive team, an achievement he has accomplished eight times during his illustrious career. Kobe Bryant plays a menacing man to man defense, a fundamental basketball that most of the newcomers into this league do not possess. Other top candidates to be considered the best player in the NBA such as Dwayne Wade and Lebron James are mediocre defenders that can not carry a team’s defensive scheme. In basketball the key quality that separates a good player from a superstar is the ability to perform under pressure. Kobe Bryant is one of the most clutch performers the game has ever seen. He demands the ball in the 4th quarter and always is the man that wants to take that final game winning shot to lead his team to victory. Kobe is the man that takes over the game when he’s team needs it the most. Kobe has taken over on many occasions for his Los Angeles Lakers squat accumulating many spectacular game winners along the way. The team’s best player is suppose to take over when it matters the most, but when a player is part all star caliber team in every roster spot such as the 2008 Olympics team it is not clear who the best player in the team is.

St. Basils Cathedral Essay - 1390 Words

Knudsen 1 St. Basil’s Cathedral As legend has it, the builders of St. Basil’s Cathedral were blinded by the command of Ivan the Terrible, so they could never create a building greater. There is still the question if St. Basil’s is actually the most beautiful cathedral made in its time. Comparing it to the beautiful Pisa Cathedral and Assumption Cathedral, which were made around the same time, one could find it hard to decide which is the most artistic. Looking at the materials, art, and icons of cathedrals are ways to gauge how beautiful the building is. St. Basil’s Cathedral was the most beautiful cathedral made in its time. Some words that would be helpful to know as these churches are being described, which will be quoted†¦show more content†¦The outside is made of white stone blocks. Inside the cathedral the masonry is filled with pieces of rough stone used in the walls to fill the cavities. The pillars, drums, and the alter wall are made out of brick. There are large paintings on the pillars stretching from the ground to the bottom of the domes. Assumption Cathedral is famous for its murals. The walls are painted in extremely fine detail, and on the top of the walls there are images of God. On the middle of the Knudsen 4 walls, there are paintings of the Life of the Virgin. On the bottom of the walls there are images of the seven ecumenical councils. The song â€Å"The Last Judgement† is painted on the west wall. Numerous figures of martyrs are painted on the pillars, and there are also many icons. There used to be an icon of â€Å"Our Lady of Vladimir,† but later on the icon was moved to St. Basil’s Cathedral so it wouldn’t be stolen because it was so expensive. There are icons of the Virgin Hodegetria, Saint George, Trinity. There is a large iconostasis, which is a screen bearing icon that separates the sanctuary from the nave, that occupies the whole wide wall of the cathedral. 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Abha simply says, â€Å" The government can easily be rebuilt, but what about our religious background?† By now she was pointing to a photo of a the Russian Cathedral, St. Basil’s Cathedral. â€Å"This Cathedral has survived two world wars, and now it’s gone. Our religion provided hope and now any physical remembrance of it is gone.† â€Å"Well, the social classes made the country what it was, the professions of Russia! I did a project onRead MoreEssay On Russia909 Words   |  4 Pagessays, staring at a picture of the government’s building hanging on the wall. Abha simply says, â€Å" The government can easily be rebuilt, but what about our religious background?† By now she was pointing to a photo of a the Russian Cathedral, St. Basil’s Cathedral. â€Å"This Cathedral has survived two world wars, and now it’s gone. Our religion provided hope and now any physical remembrance of it is gone.† â€Å"Well, the social classes made the country what it was, the professions of Russia! I did a project onRead MoreRussia, The Motherland, By Russia Essay725 Words   |  3 Pagesto have a private or serious conversation. Tapping your forehead means you think someone is stupid. Russians have a very lively and unique culture. Russia has many beautiful and interesting sites to visit. One of the most visited places is St. Basil’s Cathedral in Moscow. It is one of two of the major Orthodox Christianity churches in all of Russia. Another frequently visited site is the Moscow Kremlin. The Kremlin in Moscow is the home of Russia’s most important government offices. The Kremlin coversRead MoreRussia History Essay760 Words   |  4 Pagescultures and religions into the nation. People believe this is why Russia is a multicultural multi-religious country. Under Ivans rule his army crushed the Tartar stronghold of Kazan. Also Ivan left behind many landmarks the most popular being St. Basil’s Cathedral on Red Square. But Ivan also made mistakes like when he tried to invade the western land and it only cost Russia expense and materials. This went on to be a twenty-two year old war. Going on to the sixteenth century Russia started to rapidlyRead MoreThe Importance and Influence of Architecture in the World of Humanities933 Words   |  4 Pagescan represent designs that reflect the culture or period of era it was created. Other physical qualities such as the significance of a dome can be an important factor that contributes to the building overall. For example the St. Basil’s In Moscow is a â€Å"candy colored cathedral [with] fan of onion domes, sharp spikes, and polygonal towers [that] resemble the flame of a bonfire rising into the sky† (â€Å"20 Famous Buildings†). 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A few notable places to go and see are; Trans- Siberian Railway; Mount Elbrus; Valley of Geysers; Kizhi Island; Saint Sophia Cathedral, Novgorod; Lake Baikal; Suzdal; Moscow Kremlin; Hermitage Museum and Saint Basil’s Cathedral. Of course these are just the tip of the ice berg of things to do in Russia and one is only limited by time or money when traveling here. Military Russia’s military is much like any other power countryRead MoreDisney in Asia, Again6524 Words   |  27 Pagessuccessful facility was Splendid China, which featured replicas of the Great Wall, the Forbidden City, and other famous country-wide tourist sites. A more recent park, Window of the World, featured miniaturized tourist sites like Moscow’s St. Basil’s Cathedral. Hong Kong is located at the mouth of the Pearl River Delta of south-eastern China’s Guangdong Province. This region had, over the last two decades, achieved the fastest economic growth of any in China. Seventy million people now lived in the

Silabus Teori Ekonomi Mikro Free Essays

MICROECONOMICS I Nurman Setiawan Fadjar, SE. , MSc. Room: E-19 Class: IE-DADay: Wednesday Email: nurman@fe. We will write a custom essay sample on Silabus Teori Ekonomi Mikro or any similar topic only for you Order Now unibraw. ac. idHours: 09. 30 – 12. 00 References: – Mankiw, N. Gregory, â€Å"Principles of Economics†, 4th Ed. , Harcourt College Pub. , 2006. – Case, Karl E. , Ray C. Fair, â€Å"Principles of Economics†, 6th Ed. , Prentice Hall, Inc. , 2003. Courses: I. Priciples of Economics and Think Like an Economist. (#1, 2) II. Foundation of Microeconomics: Consumer and Firms. a. Household Behavior and Consumer Choice. (#5,21, #4,5) b. The Production Process: The Behavior of Profit-Maximizing Firms. (#13, #6) c. Short Run Costs and Output Decisions. (#7) d. Costs and Output Decisions in the Long Run. (#8) e. Input Demand: The Labor and Land Market. (#18, #9) f. Input Demand: The Capital Market and The Investment Decision. (#10) g. General Equilibrium and the Efficiency of Perfect Competition. (#7, #11) III. Market Imperfection and the Role of Government. a. Monopoly and Antitrust Policy. (#15, #12) b. Monopolistic Competition and Olygopoly. (#16, 7, #17) c. Externalities, Public Goods, Imperfect Information, and Social Choice. (#10, 11, #14) d. Income Distribution and Poverty. (#15) Grades : 1. Attendance: 5 % 2. Participation: 10 % 3. HW: 15 % 4. Quiz: 20 % 5. Midterm Exam: 35 % 6. Final Exam: 35 % + 120 % Good Luck! TEORI EKONOMI MIKRO I Nurman Setiawan Fadjar, SE. , MSc. Ruang: E-3 (IE), B-1 (AK) Kelas: IE-AC, AK-CDHari: Senin (IE), Kamis (AK) Email: nurman@fe. unibraw. ac. idJam: 07. 00 – 09. 30 Buku Referensi: – Mankiw, N. Gregory, â€Å"Principles of Economics†, 4th Ed. , Harcourt College Pub. 2006. – Case, Karl E. , Ray C. Fair, â€Å"Principles of Economics†, 6th Ed. , Prentice Hall, Inc. , 2003. Materi: I. Priciples of Economics and Think Like an Economist. (#1, 2) II. Foundation of Microeconomics: Consumer and Firms. a. Household Behavior and Consumer Choice. (#5,21, #4,5) b. The Production Process: The Behavior of Profit-Maximizing Firms. (#13, #6) c. Short Run Costs and Output Decisions. (# 7) d. Costs and Output Decisions in the Long Run. (#8) e. Input Demand: The Labor and Land Market. (#18, #9) f. Input Demand: The Capital Market and The Investment Decision. (#10) g. General Equilibrium and the Efficiency of Perfect Competition. (#7, #11) III. Market Imperfection and the Role of Government. a. Monopoly and Antitrust Policy. (#15, #12) b. Monopolistic Competition and Olygopoly. (#16, 7, #17) c. Externalities, Public Goods, Imperfect Information, and Social Choice. (#10, 11, #14) d. Income Distribution and Poverty. (#15) Penilaian : 1. Absensi: 5 % 2. Partisipasi: 10 % 3. Tugas: 15 % 4. Quiz: 20 % 5. UTS: 35 % 6. UAS: 35 % + 120 % Selamat Berjuang! How to cite Silabus Teori Ekonomi Mikro, Essay examples

Smog And Pollution Essays - Smog, Gases, Air Pollution, Pollution

Smog And Pollution Smog is one of the major forms of air pollution. It makes being outside a health threat. Some of the major contributers to smog are automobiles, factories, and other things of this nature. High temperatures stimulate the effects of smog, therefore, the highest levels of smog are on hot summer days. This means that most of the problems associated with smog occur in the summer months. Health effects vary from person to person. There is evidence that suggests that it can cause some short-term breathing problems. This includes coughing, shortness of breath, and pain with deep breathing. Individuals with asthma are much more sensitive to smog. There are a few factors that determine how unhealthy smog is to a person. The first factor is the amount of ozone in the air. Since heat is usually associated with ozone, it will make the effects of smog greater. The second is the length of the exposure. The longer a person is exposed to smog, the greater the symptoms are. Finally, the third factor is how deeply a person is breathing when exposed to smog. The heavier an individual breathes, the bigger dose of smog is going into their lungs. Scientific studies have suggested that the lungs adapt to smog and other air pollution after prolonged exposure. This defense mechanism disappears once a person is no longer exposed to pollutants. Tests on rats, which were exposed to a polluted environment for a extended period of time, concluded that there was no sign of lung cancer. The government has stepped in to combat air pollution in general. They passed the Clean Air Act in 1990. This act made provisions such as placing centralized emissions testing facilities in high risk areas. The problem with the provisions is that they cost a lot of money and the state governments do not want to pay the exorbitant price tags. Locally, a law was recently passed which will all car owners to get an emissions test on their cars by May of the year 2001. If their automobile does not pass the test, they will have to get it fixed until it passes the emissions test. The price of the repair is not expensive but it is mandatory for the car to be able to drive on the road.

Robert Browning and Elizabeth Barrett Browning

Robert Browning and Elizabeth Barrett Browning After reading her poems for the first time, Robert wrote to her: I love your verses with all my heart, dear Miss Barrett- I do, as I say, love these verses with all my heart. With that first meeting of hearts and minds, a love affair would blossom between the two. Elizabeth told Mrs. Martin that she was getting deeper and deeper into correspondence with Robert Browning, poet, and mystic; and we are growing to be the truest of friends. During the 20 months of their courtship, the couple exchanged nearly 600 letters. But what is love without obstacles and hardships? As Frederic Kenyon writes, Mr. Browning knew that he was asking to be allowed to take charge of an invalids life- believed indeed that she was even worse than was really the case, and that she was hopelessly incapacitated from ever standing on her feet- -but was sure enough of his love to regard that as no obstacle. The Bonds of Marriage Their subsequent marriage was a secret matter, taking place on September 12, 1846, at Marylebone Church. Most of her family members eventually accepted the match, but her father disowned her, would not open her letters, and refused to see her. Elizabeth stood by her husband, and she credited him with  saving her life. She wrote to Mrs. Martin: I admire such qualities as he has- fortitude, integrity. I loved him for his courage in adverse circumstances which were yet felt by him more literally than I could feel them. Always he has had the greatest power over my heart because I am of those weak women who reverence strong men. Out of their courtship and those early days of marriage came an outpouring of poetic expression. Elizabeth finally gave her little packet of sonnets to her husband, who could not keep them to himself. I dared not, he said, reserve to myself the finest sonnets written in any language since Shakespeares. The collection finally appeared in 1850 as Sonnets from the Portuguese. Kenyon writes, With the single exception of Rossetti, no modern English poet has written of love with such genius, such beauty, and such sincerity, as the two who gave the most beautiful example of it in their own lives. The Brownings lived in Italy for the next 15 years of their lives, until Elizabeth died in Roberts arms on June 29, 1861. It was while they were living there in Italy that they both wrote some of their most memorable poems. Love Letters The romance between Robert Browning and Elizabeth Barrett is legendary. Heres the first letter that Robert Browning sent to Elizabeth, who would eventually become his wife.   January 10th, 1845New Cross, Hatcham, SurreyI love your verses with all my heart, dear Miss Barrett,and this is no off-hand complimentary letter that I shall write,whatever else, no prompt matter-of-course recognition of your genius and there a graceful and natural end of the thing: since the day last week when I first read your poems, I quite laugh to remember how I have been turning again in my mind what I should be able to tell you of their effect upon mefor in the first flush of delight I  thought  I would this once get out of my habit of purely passive enjoyment, when I do really enjoy, and thoroughly justify my admirationperhaps even, as a loyal fellow-craftsman should, try and find fault and do you some little good to be proud of herafter!but nothing comes of it allso into me has it gone, and part of me has it become, this great living poetry of yours, not a flower of which but took root and grew... oh, how different that is from lying to be dried and pressed flat and priz ed highly and put in a book with a proper account at bottom, and shut up and put away... and the book called a Flora, besides! After all, I need not give up the thought of doing that, too, in time; because even now, talking with whoever is worthy, I can give reason for my faith in one and another excellence, the fresh strange music, the affluent language, the exquisite pathos and true new brave thoughtbut in this addressing myself to you, your own self, and for the first time, my feeling rises  altogether. I do, as I say, love these Books with all my heart and I love you too: do you know I was once seeing you? Mr. Kenyon said to me one morning would you like to see Miss Barrett?then he went to announce me,then he returned... you were too unwell and now it is years agoand I feel as at some  untoward  passage in my travelsas if I had been close, so close, to some  worlds wonder  in chapel on crypt,... only a screen to push and I might have entered but there was some slight ... so it now seems... slight and just-sufficient bar to  admission and the half-opened door shut, and I went home my thousands of miles, and the sight was never to be!Well, these Poems were to beand this true thankful joy and pride with which I feel myself. Yours ever faithfully Robert Browning

Whats the Difference Subsidized vs Unsubsidized Loans

What's the Difference Subsidized vs Unsubsidized Loans SAT / ACT Prep Online Guides and Tips If there's a gap between what you actuallyhave to pay for college and your school's price tag, you might be considering taking out student loans. What you might not know is that there are different types of student loans, with different terms and restrictions. First, we'll cover the basics of what it means to take on student debt. Then, we'll walk you through the differences between two major federal loan types: Direct Subsidized and Direct Unsubsidized. If you want a quick overview, just jump to the end of the article for a side-by-side comparison! First of All, What Does It Mean to Take Out a Loan? It's not uncommon for there to be a gap between what students can afford, and what college actually costs. This is where student loans come in: you can borrow money to pay for school, with the understanding that you'll pay it back (in addition to a bit extra) after you graduate. The amount of money that you actually borrow is called the principal, whereas the "extra" amount is called interest. A Little More About Interest Interest rates are always set as a percentage, so when you pay back your loan (principal + interest), you're paying back what you borrowed plus a percentage of what you borrowed. Lower interest rates = better loans, because the percentage of "extra" money you have to pay back is smaller. Here's a very simple example to demonstrate what I mean: If I borrow $100 with an annual interest rate of 10%, and I want to pay off the principal + interest in full one year later, I would owe $110 ($100 principal + 10% of $100 = $110). If I had an interest rate of 1%, though, I would only owe $101. Student loans work in the same way, although students usually borrow a bit more than $100. The amount of money you actually end up paying back depends of course on your loan principal and interest rate, but also on how often your interest capitalizes. Capitalization is when accrued (accumulated) interest is added to your principal, so you would pay interest on your original principal + capitalized interest. Bigger principal = more interest, so the less often your interest capitalizes, the better. The amount of money you end up paying back in interest also depends on how long it takes you to pay off your loan. You usually don't pay off your loan at once; you make monthly payments on interest + part of your principle. Many student loans set monthly payments that assume you will pay off your loan in 120 months, but you are free to make more than the minimum payments.The longer it takes you to pay your loan, the more interest accrues. All loans charge interest, but some lenders offer better interest rates than others. The federal government tends to offer comparatively low interest rates to student borrowers; in the rest of this post, I'll be discussing the two major types of federal student loans. The lower your interest rates, the less you'll owe in the long run. Direct Subsidized Loans Direct Subsidized loans are meant to help eligible students pay for the cost of highereducation. The thing that's most unique about Direct Subsidized loans is that the U.S. Department of Education pays the interest on your student loans during certain periods. When your interest is being paid, it can't accrue or capitalize, so your principal doesn't grow (this is a good thing)! If you have a Direct Subsidized loan, you won't accrue any interest during the following periods: when you're in school at least half-time for the first 6 months after you leave school (this is called agrace period) during a period of deferment (a postponing of loan payments) You can apply for a Direct Unsubsidized loan by submitting a Free Application for Federal Student Aid, or FAFSA. Eligibility Limits First, because Direct Unsubsidized loans are forms of federal student aid, you must meet all federal student aid requirements to be considered eligible. You can get more information about these requirements here. Direct Subsidized loans are only available to undergraduate students with financial need. Your school ultimately decides how much you can borrow; the amount cannot exceed what they determine to be your financial need. There is a maximum eligibility window for you to receive Direct Subsidized loans, equivalent to 150% of your program length. For example, if you're enrolled in a 4-year college, you can only receive subsidized loans for 4*150% = 6 years. If you're enrolled in a 2-year college, your limit would be 2*150% = 3 years. Finally, there's a limit to how much you can borrow in Direct Subsidized loans - this amount depends on your year in school. The following chart outlines the annual limits and the lifetime max for Direct Subsidized loans. Year Subsidized Loan Limit 1st Year Undergrad Annual Limit $3,500 2nd Year Undergrad Annual Limit $4,500 3rd Year Undergrad Beyond Annual Limit $5,500 Subsidized Total Loan Lifetime Max $23,000 Direct Unsubsidized Loans Direct Unsubsidized loans are similar to Direct Subsidized loans in that they're meant to help students pay for the cost of higher education. Unlike Direct Subsidized loans, interest starts accruing as soon as the loan is disbursed (paid out). You do not have to make payments while you're in school, or during a grace or deferment period. You can apply for a Direct Unsubsidized loan by submitting a FAFSA. Eligibility Limits Direct Unsubsidized loans are a bit more flexible than Direct Subsidized loans. You still must meet all federal student aid requirements to be eligible, but these loans are available to both undergraduates and graduates. Additionally, you're not required to demonstrate financial need in order to get an unsubsidized loan. Ultimately, your school will determine how much you can borrow depending on your cost of attendance and the rest of your financial aid package. For example, if your cost of attendance is covered by grants, scholarships, and Direct Subsidized loans, you may not be able to take out a Direct Unsubsidized loan. Unlike Direct Subsidized loans, there is no maximum eligibility window or period. There is a maximum borrowing amount, which depends on your year in school. All the maximums below also include any federal subsidized loan amounts (for example, if you're a dependent student who receives $1,000 in Direct Subsidized loans your freshman year, you could take out a max of $4,500 in Direct Unsubsidized loans): Year Dependent Students Independent Students 1st Year Undergrad Annual Limit $5,500 $9,500 2nd Year Undergrad Annual Limit $6,500 $10,500 3rd Year Undergrad Beyond Annual Limit $7,500 $12,500 Graduate/Professional Student Annual Limit Not applicable $20,500 Subsidized Total Loan Lifetime Max $31,000 $57,500 for undergrads $138,500 for grad/professional students (includes any federal loans received for undergrad study) Loan Interest Rates Fees I've discussed how important interest rates are when you're considering taking out student loans. When you take out loans from a private lender (from a bank, from example), interest rates may vary based on credit history. Federal student loan rates for Direct Subsidized and Unsubsidized loans are standardized, and are typically pretty low; this means that interest rates are the same for all students, regardless of personal or parental credit history. This chart shows interest rates based on loan type and borrower type for loans disbursed (paid out) before 7/1/2016: Loan Type Borrower Type Interest Rate Direct Subsidized Undergraduate 4.29% Direct Unsubsidized Undergraduate 4.29% Direct Unsubsidized Graduate/Professional 5.84% We've already talked a bit about how interest is sort of like a charge that you pay in return for being able to borrow a principle. Unfortunately, there's another fee that you're charged when you take out a subsudized or unsubsidized loan. This fee isn't interest, so it doesn't accumulate; instead, a percentage is deducted from the amount you borrowed automatically when the loan is disbursed. You're responsible for paying back the entire amount that you borrowed, and not just the amount you received after the fee is deducted. The following chart outlines loan fee percentages by disbursement date - the fees are the same for subsidized and unsubsidized loans: First Disbursement Date Loan Fee On or after 10/1/14 and before 10/1/15 1.073% On or after 10/1/15 and before 10/1/16 1.068% A Real You've just been presented with a lot of information about the differences and similarities between subsidized and unsubsidized loans. I've come up with an example based on typical student debt amounts so that you can see different financial outcomes based on subsidized vs. unsubsidized loans. The average student has about $26,000-$29,000 in federal student debt at graduation from a 4-year college (students who have graduated from private schools tend to be at the higher end of that range, whereas students from public schools tend to be at the lower end). That comes out to about $7,000 in loans per year. For the sake of this example, let's say I take out the maximum amount in subsidized loans my freshman year ($3,500), and take out another $3,500 in unsubsidized loans for a total of $7,000.Interest will accrue while I'm in school on my unsubsidized loan, so my balance due at graduation will differ significantly based on loan type, even though the original principals were the same. I would end up paying about $900 more on my unsubsidized loan than on my subsidized loan. UNSUBSIDIZED SUBSIDIZED Amount Borrowed $3,500 $3,500 Interest Rate 4.29% 4.29% Interest Accrued During School (4 years) $640 $0 Balance Owed at Graduation $4,140 $3,500 Time to Payoff at $50/month (Interest accrues for both subsidized and unsubsidized loans during this period) 99 months 81 months Total Amount Paid $4,950 $4,050 Usually, standard loan repayment happens over 120 months, not 99 or 81. Minimum monthly payments for these loans are $50, though, which is why the repayment periods are a bit shorter here. Most students who take out federal loans have some combination of subsidized and unsubsidized. The average 4-year college graduate will have monthly student loan payments of about $275 on the standard 10-year repayment plan, and will ultimately pay back $32,600 in principal + interest. Side-by-Side Comparison We've gotten into all the nitty-gritty details, but here I've put everything together in an at-a-glance reference. If you're looking for distilled information on the differences between Direct Subsidized and Direct Unsubsidized loans, this is the section for you. For any points of clarification, just refer back to the corresponding sections earlier in the post. DIRECT SUBSIDIZED LOAN DIRECT UNSUBSIDIZEDLOAN Lender Federal government Federal government Interest accrual during school, grace period, deferment period NO YES Eligibility Undergraduate only Undergraduate graduate/professional Must demonstrate financial need? YES NO Maximum eligibility window YES (150% length of program) NO Maximum award amount YES (see chart above) YES (see chart above) Interest Rate (7/1/15-7/1/16) 4.29% 4.29% undergraduate 5.84% graduate/professional Loan Fee 1.073% 10/1/14-9/30/15 1.068% 10/1/15-9/30/16 1.073% 10/1/14-9/30/15 1.068% 10/1/15-9/30/16 Application FAFSA FAFSA What's Next? Loans aren't the only type of federal financial aid. Want to learn about money that you don't have to pay back? Check out our guide on how to get a Pell Grant. Before you apply, learn more about Pell Grant eligibility requirements, limits, and application instructions. 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