Federal Unsubsidized Stafford Loan question

[bulldog1123]

I'd like to pick the brains of people who are currently in or recently graduated from pharmacy school on the way their federal loans worked. Since loans for graduate school are not subsidized, we have accumulating interest the minute we get the loan. First question, does the interest get capitalized into our base loan amount or remain separate until we graduate? I've heard it both ways, where the interest gets interest built on it while in school or the interest remains separated until we graduate and then it merges with the base loan.

Second, I'm a little lost on exactly how the interest is calculated. I am fortunate to be able to attend pharmacy school from home so my yearly cost of attendance will be around 38k. How will the interest be calculated? And what would I expect to be the monthly interest? If the interest gets capitalized it would be my best interest to pay it while in school but what would the monthly rate be?

Thanks. I understand the pharmacy market is looking bleak and my questions can be answered by the schools financial aid department. please do not use this question as a thread to further explain why pharmacy is a terrible choice. I am aware of the risks, I'm simply trying to get more information to make an educated decision.

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[Sugoi Travis]

First question, does the interest get capitalized into our base loan amount or remain separate until we graduate?

I believe interest remains separate until 6 months after you graduate, which is when your grace period ends. At that point, your unpaid interest gets capitalized.

How will the interest be calculated?

Google search "compound interest formula" and plug in your principle and interest rate on the loans.

And what would I expect to be the monthly interest?

See above answer.

If the interest gets capitalized it would be my best interest to pay it while in school but what would the monthly rate be?

I am pretty sure that interest is not capitalized while you're in school. You definitely accumulate it though.

Lastly, if you haven't considered it yet, work while you're in school. It will help drop the amount of loans you need during school and it will provide you with the opportunity to apply what you learned in class to the real world. And when I say work, I don't mean one shift a month. I mean at least 15 hours a week.