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so it doesn't accrue while you're in school or during your six-month grace period. A grace period is a length of time after you graduate before you have to start repaying your loan in full.

Also, make sure you know what steps you need to take once your CD term ends ... It's hard to find a 5% or 6% interest rate CD right now, much less a CD with as high an interest rate as this.

Ideally, you should try to save the equivalent of 3 to 6 months of your regular expenses. You can also aim to save 3 to 6 months of income. Both methods work, so choose the one that is easier for you.