My wife and I are going over our options on what we intend to do being on SAVE Plan.
We both are currently in SAVE and thankfully have been able to save a nice chunk of money and intend of paying off private student loan debt and other debts we have to then focus on our federal student loans.
We will be in a position where we feel a non income based plan may be best based on our incomes and monthly budget.
If we switch off SAVE to a plan like Standard, Extended Repayment Plan, Graduated Repayment, or Extended Graduated will the interest on our loans capitalize?
Thankfully we haven’t accrued too much interest thanks to forbearance, but still worth finding out!
Thank you to anyone who can provide the answer!
Does interest capitalize if I switch off save to a Standard or Extended Repayment plan?
byu/HenriqueItsOver14 inStudentLoans
Posted by HenriqueItsOver14
1 Comment
No… only if you were to switch off IBR.