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<strong>Fiscal Year (FY)</strong> – An annual budgetary period. A fiscal year may be defined as a calendar year or other period, such as a State Fiscal Year (July 1-June 30) or Federal Fiscal Year (October 1 - September 30).
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<strong>Capitalized interest</strong> – Accrued interest that is periodically added to a loan' s principal balance. Interest accrues on a subsidized Stafford Loan after the grace period is completed and the borrower enters repayment. For unsubsidized Stafford, parent PLUS, and Grad PLUS Loans, on the other hand, interest begins to accrue after the first disbursement of the loan. Lenders may capitalize any accrued interest on a quarterly basis or at other scheduled time frames.
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