When does student loan interest begin to accrue?

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metalgeek
Posts: 38
Joined: Tue Jan 21, 2014 4:34 pm

When does student loan interest begin to accrue?

Postby metalgeek » Mon Feb 17, 2014 3:28 pm

This is probably a dumb question, but I didn't know where to check this out. I have heard that the government no longer offers loans that don't begin accruing interest until after you graduate. Is that true? Or even partially true?

SFSpartan
Posts: 333
Joined: Tue Apr 09, 2013 10:01 pm

Re: When does student loan interest begin to accrue?

Postby SFSpartan » Mon Feb 17, 2014 3:35 pm

This is partially correct.

The government no longer offers subsidized Stafford Loans to graduate students. These loans do not accrue interest upon graduation. However, the government does offer Perkins loans, which accrue no interest until the borrower enters repayment nine months after graduation. Eligibility for these loans is based on exceptional financial need.

Most students have unsubsidized Stafford Loans, which accrue interest during law school, and carry an annual borrowing limit of $20,500. For those financing most or all of law school with loans, Grad PLUS loans are also available, though eligibility is based on credit score. The loans carry a higher interest rate, and accrue interest during law school

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malleus discentium
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Joined: Sun May 26, 2013 2:30 am

Re: When does student loan interest begin to accrue?

Postby malleus discentium » Sat Feb 22, 2014 6:14 pm

SFSpartan wrote:This is partially correct.

The government no longer offers subsidized Stafford Loans to graduate students. These loans do not accrue interest upon graduation. However, the government does offer Perkins loans, which accrue no interest until the borrower enters repayment nine months after graduation. Eligibility for these loans is based on exceptional financial need.

Most students have unsubsidized Stafford Loans, which accrue interest during law school, and carry an annual borrowing limit of $20,500. For those financing most or all of law school with loans, Grad PLUS loans are also available, though eligibility is based on credit score. The loans carry a higher interest rate, and accrue interest during law school

Minor point: the credit score doesn't matter. You just can't have any derogs. (LinkRemoved)




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