 TITLE: What Is a Student Loan Grace Period? CONTENT: Subsidized vs. Unsubsidized Student Loans\n-----------------------------------------\nThe U.S. government offers federal student loans to college students and their parents or legal guardians.\nFederal direct student loans are either subsidized or unsubsidized. With subsidized direct loans, the federal government picks up the interest while you're enrolled in school at least part time, in a period of deferment or in a grace period. Unsubsidized direct loans, like private student loans, begin accruing interest as soon as you take out the loan.\nSubsidized direct loans are available only to undergraduate students, while unsubsidized direct loans are available to undergraduates and graduate or professional degree students.\nParent PLUS loans are another type of federal unsubsidized loan and, like direct unsubsidized loans, they begin accruing interest immediately. END