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When Does Interest Start Accruing on Student Loans?

For most federal and private student loans, interest starts accruing as soon as the money is disbursed. There are a few exceptions, though.

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By Andrew Dunn

Written by

Andrew Dunn

Writer

Andrew Dunn is an award-winning mortgage and finance writer with a decade of experience covering the industry with articles published at Fox Business, LendingTree, Credit Karma, Axios Charlotte, and more.

Edited by Renee Fleck

Written by

Renee Fleck

Editor

Renee Fleck is a student loans editor with over five years of experience in digital content editing. Her work has been featured in Fast Company, Morning Brew, and Sidebar.io, among other online publications. She is fluent in Spanish and French and enjoys traveling to new places.

Updated December 5, 2023

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances.

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For most federal and private student loans, interest starts accruing as soon as the money is disbursed to your school to pay for your tuition and other costs. However, there are a few exceptions. This guide will cover when interest starts to accrue on all student loans, and give you strategies to help reduce your loan payment over time.