<p>Let's say I take out $20k in subsidized Stafford Loans as an undergraduate, and I go into a PhD program right after I finish my undergraduate education. Am I correct in my assumption that the Stafford Loans will not accumulate interest through my time in the PhD program? I have been looking for information on this on the internet, but I cannot find any explicit statements.</p>
<p>If they are subsidized, then yes.</p>
<p>Subsidized loans will not accumulate interest while in deferment (you must get the school to fill out a deferment form when you start the phD program). Unsubsidized loans will accumulate interest from the time they are disbursed until the day they are fully paid off.</p>