Yes, student loans do accrue interest while the borrower is still in school but there are a few exceptions to this rule, though.
For example, if you have a subsidized federal student loan, the government will pay the interest while you’re in school, as long as you’re enrolled at least half-time.
Unsubsidized federal loans, on the other hand, do accrue interest while the borrower is in school.
Private student loans, which are offered by banks and other lenders, may also accrue interest while the borrower is in school.
The terms of the loan will depend on the lender, so it’s important to read the fine print before accepting any loan offers.
In general, private student loans tend to have higher interest rates than federal loans, which can make them more expensive over time.
One way to minimize the amount of interest that accrues on your student loans while you’re in school is to make interest-only payments.
This means that you only pay the interest that’s accruing each month, rather than paying down the principal balance of the loan.