How often is loan interest capitalized?
If you are planning on borrowing an unsubsidized Stafford loan, then you need to know how often lenders capitalize interest. Lenders that capitalize interest only once when the loan goes into repayment will save you more money than lenders that capitalize more frequently, such as monthly, quarterly, or annually. The more lenders capitalize interest, the more interest you have to pay. Is the customer service good? Many lenders sell their loans to secondary markets after the loans have been disbursed, and some lenders use loan serving agencies, or servicers, to handle the processing of payments and customer service requests. You will need to find out which secondary markets or servicers different lenders use in order to know how good or bad the customer service will be once repayment begins. Some lenders/servicers offer round-the-clock customer service, such as a 24-hour voice response system that provides updates on the status of your loan. Be sure to research lender/servicer competency
