<p>Im an incoming freshman at University of California Santa Cruz and a first time borrower. I got a Federal direct unsubsidized loan to pay for some of my dorm. I just need to know:</p>
<p>Do I need to pay interest on this loan while I am in school (full time student)?</p>
<p>When do I need to start making payments? After I graduate? At the end of the school year?</p>
<p>Thanks in advance to anyone who takes the time to answer!</p>
<p>You can defer the interest until the loan goes into repayment. However the interest will be capitalized - meaning it will be added to the loan and you will incur interest on the interest.</p>
<p>The loan will go into repayment 6 months after you graduate or drop below half time enrollment. </p>
<p>All this is explained in detail when you do the MPN and online counseling that is required to take the loan out. It is a good idea to print it out for future reference.</p>