Adding unpaid interest charges to the principal balance of a loan, thereby increasing the balance due. Capitalization increases the amount of the monthly payments and the total amount repaid over the life of the loan.
Students can choose to pay the interest as it accrues, rather than capitalizing it.
Our online calculator can help you estimate the cost of an unsubsidized deferment or forbearance. The total amount it will cost a student to go to school for the academic year . The financial aid administrator at the school can increase the Cost of Education to allow for certain unusual expenses, such as medical expenses, child care costs, etc., at the student's request. Documentation may be required. Deferments are periods when payment on the principal of a Stafford Loan is postponed and, except for unsubsidized Stafford Loans, interest subsidy payments are made by the federal government.