The government pays the interest on this loan while the student is still going to school, and during the loan's «grace period» before the repayment begins. (cedaredlending.com)
The word «subsidized» means that the government pays interest on the loan while you're in school. (creditsesame.com)
Unlike private loans, some federal loans are subsidized, which means that you aren't responsible for paying any interest on the loan while in school or during the grace period or deferment. (gobankingrates.com)