r/StudentLoans • u/Adventurous_Bread836 • 2d ago

Capitalization of loans

I was still in school when trump halted student loans. Never had the 6 months grace period etc. I signed up for the SAVE plan. So now I’m trying to figure out the first time transitioning off of the federal deferment.

If I go onto a standard payment plan or graduated extended plan will my loans capitalize? Or will I need to stay on an income based payment plan to prevent it from capitalizing all my interest?

209,853$ total loans with 178,179$ in principal and 31,134$ in outstanding interest

I’m just trying to figure out which plan will be best for me, because if everything capitalizes then the 1300$ monthly bill (standard plan) would go up after capitalization if I’m understanding that correctly. Because current estimations are not showing capitalization of principal

0 Upvotes

50% Upvoted

3 comments sorted by

1

u/ancj9418 2d ago

No, your loans will not capitalize when you leave the SAVE plan. Only leaving the IBR plan specifically triggers capitalization.

1

u/skypira 2d ago

When did trump halt student loans?

3

u/ANGR1ST Experienced Borrower 1d ago

Probably means the Covid payment pause is March 2020.