The borrower is responsible for all the interest that accrues during forbearance. Do not have to demonstrate financial need to receive. Interest begins to accrue immediately. Begins six months after student graduates, withdraws, or drops below half time. Accrued interest could be capitalized.
Capitalization occurs at different intervals depending on the lender's policy.
Do not have to demonstrate financial need to receive. Parents may borrow up to the cost of education for their dependent, undergraduate student, minus any other financial aid the student has received for the year. Repayment begins between 45 and 60 days after receiving the funds. Interest begins accruing immediately upon disbursement of funds. Interest is charged from the time the loan is disbursed to the time the loan is paid in full.