<p>I am eligible for Federal Perkins Loan and Federal Direct Subsidized Loan. I've been reading the guides and it says the subsidized loan has no interest while I am enrolled. Federal Perkins loan doesn't say this but it says that "repayment begins 9 months after graduation". </p>
<p>I guess where I'm trying to get to is if I go with the loans, will it pile up interest rate automatically or after graduation? I would prefer not to pay for more than what I need to pay even if it's in the future.</p>
<p>The Perkins loan is a subsidized loan, like the subsidized direct loan. There is no interest while you are enrolled at least half time in school. Once you graduate or drop below half time, you have a 9 month grace period before you start repayment. Interest for the Perkins does not accumulate during the 9 month grace period. Once you go into repayment, the interest rate is 5%.</p>
<p>The direct subsidized loan also has a grace period, but it is 6 months and is for repayment only. Interest starts to accumulate on the direct loan as soon as you graduate or drop below half time (interest used to not start until the end of the grace period but that changed for loans disbursed last year).</p>