If you receive a subsidized loan the government will pay the interest while you are in school.
However, if you receive an unsubsidized you are responsible for paying for interest, which is usually 6.8%, however, you can defer it until 6 months after graduation if you wish.
A subsidized loan is one on which the federal government pays the interest while the student is in school, during the grace period, and during periods of authorized deferment. It is based on financial need.
An unsubsidized loan is one on which the student is responsible for the interest while in school, during the grace period, and during authorized periods of deferment and forbearance. It is not based on financial need. You may be eligible for one or the other, or a combination of both.
