Community Question: For the federal Unsubsidized loan, can we pay the interest as we go? Is the interest fixed until graduation? For example if it’s 5.5% now, would it be the same for the next 4 years?
Answer: You can pay any amount towards federal loans while in school. There is no penalty for paying early. The interest rate is set each year for federal loans and that interest rate will stay the same over the life of the loan.
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