So here is what I DO know: (1) While in school, interest is not capitalized. (2) Unpaid interest is supposed to capitalize once the grace period ends. (3) If I choose IBR and I have a "partial financial hardship" (IBR capped payment<standard repayment), then interest does not capitalize until the hardship ends.
My question is how 2 and 3 interact. If I immediately enter repayment, choose IBR and am determined to have a "partial financial hardship," does my unpaid interest that accrued while in school still capitalize?
Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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