Private College Student Loan

is there interest on direct loans for college?

i've got 2 loans from a private school that doesnt deal with a bank whatsoever. i was wondering if there was interest on the loan. they say i have to start paying it back 6 months after i graduate....

Public Comments

1. as of July 1st, the interest rate on direct loans for college is 6%.
2. If you have direct loans, I think your referring to government stafford loans and not private bank loans. There are three types of government stafford (direct loans), subsidized, unsubsidized, and plus loan. A Plus is taken out by your parents and since you said you have a six month grace period it's not a plus loan (no grace period with plus). With a subsidized loan, the government will pay the interest during school, grace period, deferments when the six month is over you'll beginning paying the interest rate about 6 percent. With a unsubsidized loan, you accrue interest from the beginning on the loan. You get a six month grace period following when you graduate or leave school. At the that time you make arrangements to begin payments which includes the accruing interest unless you a subsidized loan then no interest until you Begin making payments after the grace period.