For subsidized loans, the government covers the interest while the borrower is enrolled at least half-time, throughout the grace period (the six months following the student’s graduation from school), and throughout any deferral periods.  

This means that the student does not have to worry about paying interest on the loan while they are still in school. 

Subsidized loans, nevertheless, can occasionally collect interest while the borrower is still enrolled in classes. 

If a student drops below half-time enrollment, their subsidized loans will begin to accrue interest.  

This means that if a student takes a semester off or drops below half-time enrollment, they will need to start paying interest on their subsidized loans.

Additionally, if a student reaches the maximum time limit for their subsidized loans, they will begin to accrue interest. 

The maximum time limit is typically 150% of the length of the student’s program.  

For example, if a student is enrolled in a four-year program, they will be eligible for subsidized loans for a maximum of six years.