 TITLE: When Do Student Loans Start Accruing Interest? CONTENT: How Does Interest Work for Subsidized Loans?\n--------------------------------------------\nDirect subsidized loans are student loans offered by the federal government to undergraduate students who demonstrate financial need. They start accruing interest the day you receive your loan.\nThe federal government pays the interest on subsidized loans while you're a student at least half-time, during the six-month grace period following graduation and during any loan deferments. Once your grace period ends, you'll begin making loan payments, including interest, on your direct subsidized loans. END