Hello!
Why does the amount I owe on my student loans keep going up while I am still in school? I have discovered that my debt keeps growing even though I am not taking out any more money. Could someone please explain why this is occurring and how I can better handle it while I am still in school?
When your unpaid interest capitalizes, it increases the outstanding principal amount due on your loan.
Your student loan balance may increase while you’re in school due to accruing interest. Even though you’re not making payments, interest on the loan continues to accumulate. This is especially common with unsubsidized federal loans and private loans where interest accrues from the disbursement date.
It appears that you are either on a private or unsubsidized loan. When these loans are taken out, interest is charged right away, thus at the start of every quarter or semester. You should not, in my opinion, be negatively impacted by your student loan while you are in “in-school deferment.” I would ask the financial aid office at your school if they have any idea what might be going on.