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Subsidized Loans Interest Question

Valued Member

Subsidized Loans Interest Question

I'm not sure if I fully need a student loan since I've  been working, saving, and investing fora long time, but was wondering if Subsidized Student Loans accrue interest in the summer if I don't take any courses. On the FAFSA website it says, "If your loans are subsidized, you’re not responsible for paying the interest that accrues while you’re in school. Interest begins accruing when you enter repayment after your six-month grace period after you leave school." I'm not sure if that includes the summer months where I won't be taking classes and was hoping someone could answer my question.

Frequent Contributor

Re: Subsidized Loans Interest Question

For the sake of argument.....


Summer is 3 months long.  If you "stopped" going to school, it will be 6 months before interest accrues.  The 3 month summer break would not be long enough to start accruing interest.  You then go back to school in Sep.  You are now in an "enrolled" status and there is no interest.


So, simply put, No there is no interest during your summer break.

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Credit Mentor

Re: Subsidized Loans Interest Question

Agree, you'll be fine in the summer.  Also if you decide to go to graduate school your subsidized loans ( from undergrad ) would also not accure interest as long as you're enrolled in school at least half time.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
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