Variable, adjusted quarterly. See Borrower Benefits for further details. No interest cost to the borrower on the subsidized Stafford while in school, grace and deferment. For Unsubsidized Stafford loans, interest is deferred and capitalized immediately before the beginning of repayment, following uninterrupted periods of grace and deferment. Interest may be deferred during school and the three-year residency period.
Unpaid interest is capitalized when repayment begins.
Deferment and forbearance options for residency. Begins three years after graduation or nine months after enrollment status drops to less than half time, but must begin within seven years after first ALP loan disbursed. Borrowers have a maximum of 20 years to repay. Standard and Alternative Repayment plans available.