KC Student Loan Request
Reminder: Direct Subsidized loans will not be eligible for an interest subsidy during the six-month grace period.
- This provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014.
- If you receive a subsidized loan during this timeframe, you will be responsible for the interest that accrues while your loan is in the grace period.
- You do not have to make payments during the grace period (unless you choose to) but the interest will be added (capitalized) to the principal amount of your loan when the grace period ends.
- This provision does not eliminate the interest subsidy while the borrower is in school or during eligible periods of deferment.