The process of taking out student loans can be overwhelming. Especially for a younger student who is financially inexperienced, it can be confusing to navigate all the terms and concepts associated with borrow money to fund your education. Of course, most students will consult with a parent, guardian, or mentor before taking out loans, but is important to have a thorough understanding of your loans in order to be a responsible borrower.
Chances are that if you are borrowing money for college, you will qualify for federal assistance of some sort. One term you should be familiar with when applying for federal assistance is the federal Subsidized Stafford loan. “Subsidized” means that the federal government will take care of your interest payments as long as you remain a student. Therefore, your loan will not accrue interest while you are in college. Of course, following graduation and your grace period before repayment, your loan will begin accruing interest.