How does The Interest Accrual Work During the Study Period For Education Loan

Investing in education is a pivotal step, but the costs can be significant. For students taking out education loans, interest accrual during the study period can be a key factor. Many education loans offer a moratorium period, during which students are not required to make payments. However, interest may still accrue on the loan during this time. Depending on the loan terms, students may either start repaying the interest immediately or it may be capitalized—added to the principal loan amount after graduation. This increases the total loan amount to be repaid once the repayment period begins, leading to higher costs.Readmore