These plans are designed to give you flexibility in meeting your repayment obligation. You may make loan payments before they are required, or in amounts greater than required, at any time without penalty. When you pay back your loan in full, you agree that the current holder does not have to send you the original Note but may instead send you a letter telling you that you have paid-off your loan. You should keep this letter telling you that you have paid-off your loan in a safe place. Interest - The interest rate on your loan is a variable rate, which can change each year on July 1.
Interest is charged on the unpaid loan amount.
Interest charges begin on the date the loan is disbursed and end when the loan is paid in full. For subsidized loans, the federal government pays your interest charges while you attend school, for 6 months after you leave school, and while your loan is deferred. You must pay all other interest charges on your subsidized loan. For unsubsidized loans, you must pay all interest charges. You agree that the lender may add interest charges to your loan amount, as provided by law, if you do not make payments of interest.