The student may borrow Federal Direct Stafford Loan (Subsidized and Unsubsidized). The interest for these loans is at a variable cap not to exceed 6.8%. Repayment is optional, not required, while the student remains in school on at least a half-time basis. If the student chooses not to begin repayment during his/her enrollment period, repayment will then begin six months after the students last day of attendance either by graduating, withdrawing or being withdrawn. The six-month period is known as the student’s grace period. Interest for the Federal Direct Stafford loans, both Subsidized and Unsubsidized, starts to accrue when the loans are disbursed (approximately thirty-one days after the student starts class). The federal government has elected to pay the interest for the subsidized portion of the student’s loan during the time the student is in school as well as during the six-month grace period. The six-month grace period starts when the student completes the program or is no longer enrolled in the program. The student then becomes responsible for the interest on the subsidized portion of his/her loan upon completion of the six-month grace period. The federal government, however, does not pay any interest for the unsubsidized portion of a student’s Stafford loan. Any interest, which does accrue on a student’s unsubsidized portion of his/her Stafford loan, will be capitalized (added) to the students loan balance upon the expiration of the student’s six-month grace period unless the student elects to pay the interest while in school.