I just got a interest notice which says this is not a bill. But I have hard time understanding what this notice is for, if it's not a bill then why does it asking me to pay? It says I have total outstanding interest $349.88 which needs to be paid by 06/21/2017.
It says "This is the total amount of interest that will capitalize (be added to your principal balance) at the end of your current status if you do not make a payment to satisfy the full amount by the applicable Anticipated Capitalization Date. You will pay more over time since you will be accruing interest on a higher loan balance."
This is my first time trying to deal with these bills after I graduated college and I want to know what this notice is trying to tell me.
What is the meaning of interest being capitalized?
Why does it say it's not a bill if it still asks me to pay some amount of money, like it's trying to deceive me.
I already passed the due date of Anticipated Capitalization Date, what should I be expecting now? Is my debt going to higher?