How do Direct Subsidized Loans work?

So, I recently got my financial aid package, and it includes a Direct Subsidized Loan. I'm a little confused about how these loans work. Are we supposed to pay them back while we're still in college, or does repayment start after graduation?

Direct Subsidized Loans are federal loans provided to eligible undergraduate students who demonstrate financial need. They are a helpful resource for many students because the interest is subsidized by the U.S. Department of Education while you're enrolled at least half-time in school, during the six-month grace period after you leave school, and during any deferment periods.

Repayment for Direct Subsidized Loans begins after your six-month grace period, which starts once you graduate, leave school, or drop below half-time enrollment. During the grace period, you don't have to make any payments, but you can if you want to get a head start on repaying the loan (and any principal payments made during that time will not be charged interest).

Once the grace period ends, you'll need to start making regular monthly payments. There are several different repayment plans available, including the Standard Repayment Plan (which has a fixed monthly payment for up to 10 years), Graduated Repayment Plan (with payments increasing over time, also for up to 10 years), and income-driven repayment plans (which base your monthly payments on your income and family size and extend the repayment period to 20 or 25 years).

If you ever run into trouble making payments, you can request a deferment or forbearance to temporarily stop or reduce your monthly payments. Keep in mind, though, that interest will typically accrue during these periods for unsubsidized loans, but not for subsidized loans. Always stay in touch with your loan servicer if you're having difficulties repaying your loan, as they can help you explore your options and avoid default.

Remember that Direct Subsidized Loans are just one part of your financial aid package and that you should also consider other options like grants, scholarships, and work-study, which can help reduce the overall amount you'll need to borrow and repay.