The interest on an unsubsidized loan must be paid by you while you are in school, and during any grace or in-school deferment periods. You also may choose to have the interest deferred, which adds the deferred interest to the principle. This is called capitalized. Having the interest capitalized will mean larger monthly payments when you begin repayment. A PLUS Loan is available so parents may borrow to help meet college costs for their son or daughter.
PLUS loans are only for parents of a dependent undergraduate students.
Repayment of principle and interest begins 60 days after disbursement. This webpage is maintained by Loan Nguyen and was last updated on January 29,2001.