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How does interest accrue while I am in school?

Answer:

For subsidized federal student loans, interest is paid on your behalf by the U.S. government while you’re in school. For most other loans, interest accrues on a monthly or quarterly basis. 

That interest is then “capitalized,” meaning that it is added to your unpaid loan principal balance on a schedule. Consult your lender for details about interest on your student loans.

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