You heard that right.
I just spoke to the student loan department. It turns out that because my loan was from a private foundation, they have subsized the interest for the duration of my college education (this I knew), and for the rest of the life of the loan (this I didn’t know and was VERY happy to find out).
So, I have an interest-free loan. Not just for six months or one year or two years, but for 10 years. As long as I stay current on payments, I will never pay interest. 
Can you tell I’m excited? And here I was worrying about my interest rate. Ha!
Oh, and I also get a grace period of six months. My first payment is due in 2008. This is going to do wonders for my cash flow for the rest of 2007.
I wish I didn’t have a loan, but if I HAD to be in debt, this is probably the best deal I’ll ever get.
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WOW! That is very generous… I would take my time paying them back, too! Personally, I think ALL education loans should work this way… it would help a lot of students get a better start in the real world.
That does sound lucky. I started having payment issues with my student loan once I made too much money, and the interest wasn’t deductible anymore. Luckily for me, I am almost done paying it off.
Wow awesome deal.
Wow, that’s amazing! I wish I had a deal like that. I’ve been stuck with a 9.5% interest rate on my crappy student loan.
anything interest free there is no need to rush to pay it.
I consolidated my loans and I still pay interest about 3%
Congrats on a interest free loan !
That’s awesome! What a fab deal!
Not a bad deal at all!
That is fantastic! Is there any way you can offer up more information about it so someone else might be able to get a similar opportunity? (Not me of course. I’M DONE!!!)
I can’t believe someone in these comments is paying 9.5% on their student loan! In the UK, we start paying back when we earn £15,000 or more and the rate is set at the CPI inflation rate (currently 2.8%) which is essentially interest-free
Are you sure you understood them correctly? Subsidized does not mean interest free. Subsidized loans don’t incur interest when you’re in school OR during a deferment period. Unlike UNsubsidized loans, the interest accrues and capitalizes, which is then added to your principal balance – even when you’re not in repayment status. However, even subsidized loans, once you enter repayment status, accrue interest.
If what you say is correct, then congratulations! Although I’ve never heard of that before. More students should be getting “interest free” loans.
Single Ma – yeps, the loan is interest-free for all ten years of repayment, which is why I’m so excited.
I got the loan from a private foundation, and when they told me, I had to ask them to clarify a couple times because I thought I heard wrong. “It’s interest-free for the entire life of the loan? Right? RIGHT?”
These unsecured loans’ features will also help you to build a budget and stick to it easily. When credit cards are included in a budget, the complexity increases because you have to foresee many things in order for the budget to be useful. Predicting ones behavior is complicated enough, if you have to predict market conditions and income variations in order to see if you will be able to meet credit card payments that keep changing as a consequence of a variable rate, things can get really complicated.
Wonderful deal on the student loans. May I ask where you got it from?