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