Q: What is standard repayment?
Q: I can't make my scheduled payments. What are
my options?
Q: What is a graduated repayment plan?
Q: What is an income-sensitive repayment plan?
Q: What is a deferment, and how do I get one?
Q: What is a forbearance, and how do I get one?
Q: What happens to the interest on my loan while
I am in deferment?
A: The interest that accrues on your
loan during deferment is treated differently, depending on the type
of loan you have.
- For subsidized loans, the federal government pays the interest
for you; however, if you choose to make payments during this period,
those payments are applied to the principal balance of your loan unless you have
outstanding accrued interest that is due.
- For unsubsidized loans/Federal PLUS loans, you are responsible
for the interest that accrues during deferment. If you are unable
to pay the interest while your loan is deferred, you can choose
to have the interest capitalized, meaning it will be added to
the unpaid principal balance of your loan at the end of the deferment
period.
Q: What happens to the interest on my loan while
I am in forbearance?
|
