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- Dec 19, 2007
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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
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
