The interest rate on your Direct Subsidized Loan is fixed, and you will not be charged interest while you are enrolled in school at least half time, during your 6-month grace period, or during deferments. You will begin repaying your loan six months after you graduate, leave school, or drop below half-time. The monthly payment and actual length of the repayment period depends on the amount of the loan you owe, your interest rate, and the loan repayment option you chose. While there is no interest on the Direct Subsidized Loan while you are in school, there is an origination fee.