How does interest accrue while I am in school?

Answer:

For subsidized federal student loans, interest is paid on your behalf by the U.S. government while you’re in school. For most other loans, interest accrues on a monthly or quarterly basis. 

That interest is then “capitalized,” meaning that it is added to your unpaid loan principal balance on a schedule. Consult your lender for details about interest on your student loans.

Topics:
Was this page helpful to you?

Note: Do not include sensitive information like your name, contact information, account number, or social security number in this field.

The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

Read full answer Hide full answer