Subsidized Federal Direct Loans are based on financial need, and the government pays the interest to the lender while you are in school at least half-time, as well as during any deferment periods.
Unsubsidized Federal Direct Loans, on the other hand, are not based on need, and borarticleers are responsible for all interest accrued on the loan. Interest payments can be deferred until graduation and then will be capitalized and added the to principal of the loan. You also can make payments on the interest while in school by contacting your lender.
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