Unsubsidized loan interest question?

The interest accures on a daily basis. It comes to 2.79 a month per 500.00 loan. You do not have to pay it back until it goes into repayment, that is you quit, graduate or fall below half time. What you want to do is pay back the interest before the loan goes into repayment. The reason is because if you do not then they will add the interest to the amount of your orginal loan for a new higher balance then you will be paying the interest on a higher loan causing you to pay more (this is called capitalization). I called them and they advised me just to pay it by year. My daughter has a 5500 loan we took out for fall last year and the interest is 80 bucks right now as of today, if that gives you an idea.