Reply #11: As it turns out the current DOE is stopping subsidized loans for graduate students.

[aikoaiko]

Once you sign the paper, the interest starts accruing.

http://www.savvysugar.com/Federally-Subsidized-Loans-Graduate-Students-Taken-Away-18576179
Bad news for 82 percent of Sugar readers who are considering grad school: there will be no more federally subsidized loans for graduate or professional students as a result of the latest debt deal.

Right now, grad students are allowed to take out a maximum of $20,500 in federal loans, and up to $8,500 can be subsidized. Subsidized loans, which are only for those who qualify for this extra financial help, basically means the government will be paying interest on it while you are enrolled in school, so you don't have to. This will all change for loans taken out after July 1, 2012.

The move is estimated to cost students $18.1 billion over the next 10 years and financial experts say it will add thousands of dollars in interest to an already costly graduate student loan. Those who would be harder hit would naturally be students who are in degrees that take longer to complete.