<p>Is it possible to defer a subsidized federal loan while in grad school full time? Does the interest still not accrue because it's subsidized? I read all the forms my senior daughter received and don't see anything on this issue.</p>
<p>My D is in med school and has been able to defer her undergraduate Stafford loans during this time.</p>
<p>I’m in a PhD program and have had all of my federally subsidized loans deferred for the last four years.</p>
<p>Yes - you can defer your loans as long as you are a full time student. If the loans are subsidized the government will continue to pay the interest on the loans. For unsub. loans, the borrower pays the interest. In this case you can make interest only payments or allow the interest to accrue.</p>
<p>i would rather that your DD would start amortizing the student loans because she would just delay the date that she would pay it off, and because the interest is now being Paid by the Taxpayers.</p>
<p>I guess my real question is if the subsidized loan is deferred while she is getting her PhD when she finally does finish will we only have to pay back the original principal amount within the 6 months grace period. Maybe 5 or 6 years from now that amount won’t seem so huge if the economy ever recovers. But if interest is accruing over that period at 5% it would not be a good idea to defer.</p>
<p>Loans can be deferred as long as the student is enrolled at least 1/2 time. Deferred Subsidized loans do NOT accrue interest, deferred UNsubsidized loans DO accrue interest, although repayment is not required while loans are in deferment.</p>
<p>Be aware the deferment is for 6 months total, not 6 months each time enrollment drops below 1/2 time.</p>
<p>[Student</a> Aid on the Web](<a href=“http://studentaid.ed.gov/PORTALSWebApp/students/english/repaying.jsp]Student”>http://studentaid.ed.gov/PORTALSWebApp/students/english/repaying.jsp)</p>