<p>For her freshman year, my daughter took out an unsubsidized Stafford loan. I've been thinking I'd like to pay the interest for her while she is still a student, but I have no idea how to do this/if it's possible. She won't be home again until August, and I don't know where she "filed" her paperwork, so this is a theoretical question for now. Can interest be paid on an unsub Stafford loan while she's still a student?</p>
<p>Yes, you can the interest, or she can. If it is not paid, it is added to the principal and due six months after graduation, and increases the total cost of the loan.</p>
<p>you can usually pay the interest as you go along - be careful when you send in the payment to clearly mark it as an 'interest' payment and also be certain that you are sending it to the correct address. Some lenders have a different address for payments etc.</p>
<p>Your daughter should be receiving a statement from whomever is funding her loan. We get them periodically. There is a little "tearslip" at the bottom of DS's and we just fill it out, and send in the payment for the interest. <em>We</em> are subsidizing the unsubsidized loans!</p>
<p>mezzo-this is a great idea, allowing your D to be responsible for her loans but making sure she is not penalized for interest accruing while she is in college with no means to begin payments.</p>
<p>A big thumbs up from oog!</p>
<p>Ah, thanks, O-oog! I figure it's the least we can do; so much of her education is being paid for through scholarships she has earned (both from the college and outside scholarships) that we're trying to do any extra we can to help out. We also intend to pay off at least a portion of her student loans once she graduates, but <em>shhh, it's a secret</em></p>
<p>I'm doing this for my son. He has a sallie mae one and I do it online. I can keep track of the payments and see hte interest, etc. It does add up and I'm glad I thought of doing it....the amount if you don't can get very high.
The last time, I sent a little over so they applied it to the principal.</p>