Friday, July 24th, 2009
Does interest accrue on my loan while I am a full-time student in deferment?
Tina asked:
I know that I have 6 months until after I graduate to start paying back the loan but doesn’t that mean interest will start accruing the 6 months grace period as well? I am currently in deferment but it is still accruing interest. Is anyone else in this situation or should I call them to ask what’s going on?
I know that I have 6 months until after I graduate to start paying back the loan but doesn’t that mean interest will start accruing the 6 months grace period as well? I am currently in deferment but it is still accruing interest. Is anyone else in this situation or should I call them to ask what’s going on?
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July 24th, 2009 at 7:43 am
Interest not only accrues during your deferment – interest accrues from the day that your loan funds were originally disbursed.
The only exception to this rule is in the case of the Perkins Loan, or the subsidized Stafford Loan. Both of these are a special type of need-based financial aid – and in both cases, the federal government pays the interest as it accrues – from the time the loan is disbursed, until the end of the 6-month grace period.
So…unless you have a Perkins or subsidized Stafford loan – you’re experiencing exactly the same interest situation as all other federal loan borrowers – you owe – and you’ll pay – interest from the date of disbursement until the date of your final payment.
I hope that helped. Good luck!