What are the interest charges during the course period when loan repayment is deferred?
24 Aug 2026 · Answered by Syeda Uzma · 1 min read
It depends on the type of student loan you have.
- Subsidized loans: No interest is charged during the course period if your repayment is deferred. The government covers the interest, so your loan balance does not increase during this time.
- Unsubsidized loans: Interest continues to accrue during the course period, even if repayment is deferred. If you do not pay this interest as it accrues, it will be added to your principal (capitalized) after the deferment period, increasing your total repayment amount.
Loan interest policies are subject to change.
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