False, capitalized interest should not be included in the calculation of interest times interest earned.
Capitalization is the process of increasing your loan's main balance by the amount of unpaid interest. When payments are put off during intervals of deferment or moratorium and missed interest is capitalized, the original balance of a loan rises.
Interest begins to accrue (increase) on your loan the moment it is delivered . Our Unpaid Extra may capitalize at specific times—when your separation or waiting period expires, or at the conclusion of forbearance or deferment. That implies that it is added to the current principal of your loan.
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