Start paying back subsidized loan while in grace period.

[kyva1929]

<p>Hi all,</p>

<p>If I apply a payment toward my subsidized loan account within the grace period, would it automatically terminate the grace period (during which interest incurred are subsidized) prematurely?</p>

<p>Thanks.</p>

[4kidsdad]

<p>No the early payment won’t terminate the grace period</p>

[kelsmom]

<p>If you have a subsidized loan that is from the current year, you may want to start paying for it during the grace period … sub loans made after 7/1/12 still have a grace period, but interest does accrue during the grace period. See this link for an explanation: [Direct</a> Subsidized or Unsubsidized Loans / Federal Stafford Loans (subsidized or unsubsidized)](<a href=“Mapping Your Future: Page not found”>Mapping Your Future: Page not found).</p>

[kyva1929]

<p>@kelsmom</p>

<p>Thanks for the info! I received two disbursements after 07/01/2012, I might just pay these two off before grace period starts. I borrowed more than what I needed.</p>

[4kidsdad]

<p>More details

*Note: If you receive a Direct Subsidized Loan that is first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

</p>

<p>Thanks kelsmom</p>