MBA Finances

Federal Loans FAQ's

Does interest accrue on my loans while I'm in school?

Subsidized Loans: No. Interest on the Subsidized Loan is paid for by the government while you are enrolled at least half-time (6 units), during your 6-month grace period and during authorized periods of deferment.

Unsubsidized & Grad PLUS Loans: Yes. Interest on the Unsubsidized Loan and the Grad PLUS Loan begins accruing from the date of disbursement (only on the amount that has been disbursed). While you are responsible for the interest at all times, you can choose to not make interest payments while in school (the interest will continue to accrue; however, this is simple interest---it is not compounded (or capitalized) until just before entering repayment).