What is capitalization?

Whenever you have gone through an authorized period during which you are not required to make payments, such as during an in-school, grace, deferment or forbearance period, as well as during periods of repayment wherein your regularly scheduled monthly payment does not satisfy the interest amount due for that period, interest will continue to accrue on your college loan and be added to the principal balance when you start making payments again. You will learn more about capitalization when you complete our application and the financial wellness course.