Addition of accrued, unpaid interest to the principal of your loan.

Adding the amount of unpaid interest to the amount originally borrowed

Capitalizing interest means adding unpaid, accumulated interest to the principal balance of your loan. Capitalization increases the total cost of your loan. If you choose to let your interest be capitalized, you repay more money in total than if you pay the interest while you are in school. Whichever option you choose, you are responsible for paying the full amount of all interest on the loan.

Having interest added to the principal amount rather than making interest payments. This increases the principal amount and adds significantly to the monthly payment during the repayment period.

Adding unpaid accumulated interest to the outstanding principal balance of the loan. After adding interest to the outstanding principal balance of the loan, future interest will accrue based on the new principal balance, which creates a situation where the borrower is paying interest on interest.

Addition of unpaid interest to the principal balance, which increases the monthly payment and total repayment amount.

The addition of unpaid interest to the principal balance of a loan. This can increase the total outstanding principal amount.

Adds unpaid interest onto the principal balance of a loan.

Addition of unpaid interest to the principal balance of a loan, which increases the total outstanding balance due.