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URL:  http://boards.fool.com/for-some-reason-i-thought-that-interest-did-not-30460132.aspx

Subject:  Re: Retirement, college, and Obamanomics Date:  1/1/2013  1:05 PM
Author:  2gifts Number:  71166 of 78166

For some reason, I thought that interest did not start accruing till the student graduated.

There is a difference between subsidized and unsubsidized loans. I did a quick Google search, and found this:


http://www.staffordloan.com/stafford-loan-info/faq/whats-the...

Essentially, subsidized loans work like you thought where the interest is paid by the federal government while the student is in school, and so the portion the student pays does not start to accrue until after graduation. These loans are based on need, and were probably what you had in school and were certainly what I had in school. Unsubsidized loans, which is most likely what your kids would get and would have been what my kids would have taken out, have the interest accrue from the date of borrowing, and the student is responsible for all of the interest, although