How often does interest accumulate on an unsubsidized Stafford student loan from the government? and San Jose Mission Loan Closing 9

How often does interest accumulate on an unsubsidized Stafford student loan from the government?

The interest rate on an unsubsidized Stafford student loan is 6.8%. How often does interest acculumate on such a loan? For example, if my loan is $ 5000, how do I calculate when and how much interest is capitalized onto the loan. Thank you for your help.


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Answer by NotAnyoneYouKnow
Check the terms of your loan agreement, as documented on your Master Promissory Note.

Some lenders capitalize the interest on a Stafford loan every three months, some every six months, and some once a year. Other lenders capitalize the interest only once - when the grace period on the loan expires and your repayment obligation begins.

The more frequently the lender capitalizes your interest, the more interest your loan will accumulate. Remember - every time interest is added to your loan balance, you effectively pay interest on that interest until the loan is repaid. The lender who capitalizes your interest only once is providing a big dollar savings over a lender who capitalizes more frequently.

Sorry I couldn't answer your question completely, but I can direct your attention to the MPN that you signed with the lender.

Good luck - I hope that helps!

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San Jose Mission Loan Closing 9


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San Jose Mission - Loan Closing

Sheila Lopez of Catholic Charities, Diocese of St. Petersburg was instrumental in bringing the vision of a first class affordable housing community for farmworker families to reality.

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