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To anyone who might know:

This is my first post on this board.

I am emerging from a lengthy forbearance with my federal student loans and start my "normal" repayment schedule this month. It appears that some of my federal loans (which are the type with interest that capitalizes) appear to have increased significantly during the forbearance. I assume that this increase is due to the interest accruing. I thought that interest did not accrue during a forbearnce, since it is generally for a hardship.

My question is: Is interest allowed to continually accrue during a forbearance?

Am I totally in error about my assumption? This seems contrary to the logic of being granted a forbearance, since if so (and in my case) the total amount due on the loans has increased significantly duirng the forbearnace, a period when I paid a limited amount each month. If this is true, I am now looking at monthly amounts approximately $75-100 more per month above what I would be paying if I never got the forbearance.

Any help/thoughts would be appreciated. This issue is starting to be a real headache, and I hope it is not due to a potentially costly mistake on my part :-(


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