Borrower’s Information - Ready. Set. Grad.
(3) Notwithstanding §685.208(l)(5) and §685.209(b)(3)(iv), for a Direct Loan not eligible for interest subsidies during periods of deferment, and for all Direct Loans during periods of forbearance, the Secretary capitalizes the unpaid interest that has accrued on the loan upon the expiration of the deferment or forbearance. ................
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