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. You may pay the interest as it accumulates. If you allow the interest to accumulate, it will be capitalized. The accrued interest added to the principal balance at intervals predetermined by your lender.
Intervals vary by lender.
Shorter intervals amount to significantly larger repayment amounts. Southwest Student Services Corporation capitalizes interest upon entering repayment. You must formally request a deferment through the procedures established by the holder of the loan. You must continue making payments until you are notified that the deferment has been granted.