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what good reason some student decide postpone making the the interest payment untill after they graduate? explain Jout paying r tn total interest over the

what good reason some student decide postpone making the the interest payment untill after they graduate? explain

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Jout paying r tn total interest over the life of your loan. With a 10-year payback period, your total interest payments are $4,642, while with a 25-year payback period, your total interest payments are nearly $12,639, or almost three times as high. Being familiar with the interest rate concepts we are discussing in this chapter can help students and their parents as they decide how to finance a college education. Helpful loan calculators are available on the studentaid.ed.gov and bankrate.com sites. Answer the following Questions: A certified financial planner notes that with an unsubsidized student loan, the borrower has the choice of whether to make interest payments on the loan while still in college. She advises that making the interest payments rather than postponing them until after graduation is always to your financial benefit .... because otherwise the interest payments] will capitalize." a. What does the financial planner mean when noting that the interest payments will "capitalize"? b. Why does she believe that making the payments would be to your financial benefit? Are there good reasons some students decide to postpone making the interest payments until after they graduate? Briefly explain

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