Guides / Student loans
Interest while you're in school
Subsidized vs. unsubsidized makes a difference.
Some federal loans don't build interest while you're in school at least half-time; others do. Knowing which you have helps you plan.
The difference
- Direct Subsidized Loans (for undergraduates with financial need): the government generally pays the interest while you're in school at least half-time
- Direct Unsubsidized Loans: interest builds from the start, and unpaid interest can be added to your balance later
- Paying even small amounts of interest while in school can lower what you owe
General educational information. Aid rules change; check StudentAid.gov. Pocket Change Hub isn't paid by any lender, card company, school or textbook seller.