Am I responsible for the interest while I am in a deferred status?

Interest will not accrue on your subsidized Federal Direct loan or Federal Perkins loans during deferment.

If you have an unsubsidized Federal Dire loan, the interest will compound during deferment.

Either way, you are not required to make interest payments during deferment. However, if you have an unsubsidized Federal Direct loan you may want to consider paying the interest only if possible. If you decide not to pay the interest during deferment, it will be capitalized (added to the loan principle) and the amount you have to pay in the future will be higher.

Created: Jul 09, 2004 - 6:22am Updated: Oct 26, 2011 - 7:11am Author: Web Technologies Article: 1245
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