is there a deferment application for unsub loans?

Paying for College
1

<p>or are stafford loans automatically deferred while i am in school?</p>

2

<p>im talking about the interest payments most people defer while they are in school</p>

3

<p>my perception is that if i sit around and dont pay the interest, it will be capitalized automatically to the principal…but i want to make sure so that im not hit with an unexpected bill</p>

4

<p>From this website:
[Student</a> Aid on the Web](<a href=“http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp]Student”>http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp)</p>

<p>Direct Unsubsidized Loans—You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Like subsidized loans, your school will determine the amount you can borrow. Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.</p>

5

<p>but does it capitalize automatically, or do i have to ask?</p>

6

<p>Did you go through the docs…not sure but would imagine it does capitalize if you don’t make a payment</p>

<p><a href=“http://studentaid.ed.gov/students/attachments/siteresources/11-12YFSL.pdf[/url]”>http://studentaid.ed.gov/students/attachments/siteresources/11-12YFSL.pdf&lt;/a&gt;&lt;/p&gt;

7

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<p>ive looked through everything but i didnt just want to rely on my instinct</p>