federal-direct-graduate-plus-loan-interest

Federal Direct Graduate PLUS Loans have a fixed interest rate which is set annually by the federal government. This means that there will be no increases in interest rates and monthly payments from year to year. Interest begins accruing from the date the loan is disbursed and may be capitalized. Capitalization means that the accrued interest, if unpaid, is added it to the principal of the loan. Repayment on this loan begins as soon as it is fully disbursed, however the student may request a deferment as long as he or she remains enrolled at least half-time.