A Federal Direct subsidized student loan is interest free while you are enrolled in school
at least half time. You also have a six month grace period once you graduate or stop
attending school, before you begin repaying the loan, note: interest will accrue during
your grace period. The Federal Direct unsubsidized student loan begins to accrue
interest at the time the loan is disbursed. Unless you make the quarterly interest
payments, the interest will capitalize which will cause your loan payments to be larger
once you begin to repay your loan. For more information, refer to the Federal Student
Guide.