Interest Accrues at Disbursement?

Published July 29, 2013

Question by DreamGirl: Interest Accrues at Disbursement?
I recently received an estimate Financial Aid Award letter from Columbia College Chicag and saw underneath a section entitled “Additional Available Self Help” a total of about $ 5500 in subsidized and Unsubsidized interest.

$ 7500 stafford loan that I am eligible to receive?
I am still not clearly understanding this…Does this mean that I can apply it to my tuition payments?

Best answer:

Answer by Z
a

Answer by M. Jones
For the unsubsidized loan, interest will start to accrue at the time of disbursement. For the subsidized loan, no interest will accrue while you are enrolled in school at least half time. This is because the government pays the interest for your while you are in school. They are subsidizing the loan.

Cold choke –