When does student loan interest begin to accrue? Forum

[metalgeek]

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]

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

[malleus discentium]

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)