The costs of higher education are rising each year. That's why saving for your child's
college education should be thought of as a long-term project. This calculator helps
you develop a savings strategy to cope with these escalating costs. To change the
pre-filled values, simply type new values over them.
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.