What Triggers Student Loan Interest Capitalization?
Sometimes a student loan borrower isn’t required to make payments on his or her loans, for example: • when he’s in school his loans and his loans are in deferment, • for the six months after he leaves school when his loans are in a grace period, and • during other periods of authorized deferment or forbearance. But on unsubsidized loans, interest is nearly always accruing (with a few exceptions). So if a borrower isn’t making payments, what happens to the unpaid interest? Specific events…
Private Student Loan Consolidation or Refinancing
Many of us have private loans at variable interest rates, sometimes with no cap on how high the rate can climb. If you have expensive private student loans and good credit, refinancing may be available and worthwhile. For example, with a strong credit score, you might be able to refinance at a lower or fixed interest rate instead. Unfortunately, if your credit score is low, or you are experiencing financial distress, you’ll probably have a difficult time qualifying for the best refinancing terms. And BEWARE of consolidating federal loans into…
