Repaying Student Loans

Accrued Interest Calculator

This worksheet shows you how unpaid accrued interest, if capitalized, can affect the outstanding balance of your loan.

Outstanding Loan Balance: $

Interest Rate (%):   %

Number of months payments not required:  

How often do you make interest payments during this period:   Monthly Quarterly Annually

Payment Amount: $

All fields required.

Accrued Interest: $

New Outstanding Balance: $

   

Some loan programs allow students to defer payment of principal and interest while in school. If you qualify for federal interest subsidy, the federal government may pay the interest during this period. Loans eligible for this type of subsidy include Stafford loans and Perkins loans.

If your loan is not eligible for this federal interest subsidy, or if your loan is in forbearance (periods when you are allowed by your loan servicer to stop making payments temporarily because of financial hardship), the balance of your loan will increase by the amount of unpaid interest that accrues during the period when you are not making payments.

You may want to consider making some payments toward accrued interest, even when payments are not required, to minimize the growth of your loan balance.