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<p>Subsidized loans that are interest free while still in school are set to expire in July of this year. </p>
<p>Also, you DO still pay interest on loans that are subsidized. If a student gets $1000 (on say a $5000 loan) back through these cards and needs to use it to buy books, school supplies, pay rent, or whatever, they may only be getting say $900 out of the $1000 after all of the fees associated with the card and account. Then when they graduate, they still have to pay interest on the $5000 even though they only really got $4900 out of it.</p>