Frequency of Compounding Interest on Fed. Loans After Entering Repayment

Hi to all you FinAid Mavens,

So I'm crunching some numbers and I can't seem to find the frequency with which the interest compounds on the federal loans after one enters into repayment. I realize that the unsubsidized ones accrue simple interest during education and then capitalize when you enter repayment, but after that I would imagine that they compound at some regular interval. Is it Hourly? Daily? Monthly? Quarterly? Is it different for the subsidized loans vs. unsub? Does it depend on which institution you borrow from? Is it affected by loan consolidation programs (I would assume so)? Thanks for any insight.

-OFD

It depends on your lender actually. It is good to ask you lender if and when they capitalize the interest. Usually when you are in repayment you are always paying off the interest each month with your payment, so capping doesn't need to happen as frequently. But ask if you are considering deferment or forbearance options in the future.