Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How is a loan capitalized?

capitalized loan
0
Posted

How is a loan capitalized?

0

If a borrower elects to defer payments while in school, the interest accrued while in deferment is added to the loan balance. This is known as interest capitalization. It increases both the principal balance and the monthly payment amounts.

Related Questions

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.

Experts123