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Does interest accrue while the loan is deferred from repayment?

April 26, 2017accrue Deferred loan repayment

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Does interest accrue while the loan is deferred from repayment?

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Yes. The interest rate for each deferment period will be calculated on June 1 using the 91-day T-bill rate on June 1 plus 2 percent. The rate determined on June 1 will be the rate in effect for the following July 1 through June 30 of the next year. The annual calculated deferment rate will not exceed 6 percent. An invoice for the total accrued interest amount will be mailed at the end of each deferment year. You may or may not elect to pay this interest when billed. Any portion that is not paid by June 30 of each deferment year will be added to the principal balance of your loan.