Loan Balance at End of Deferment Period:
Total Interest Accumulated:
What is deferment?
A deferment allows you to temporarily postpone your federal student loan payments. While you do not need to make payments on your loan, all unsubsidized loans will continue to accrue interest. When interest is capitalized (added to the principal) at the end of a period of deferment, it will increase the outstanding balance, which will likely cause monthly payments to rise with respect to pre-deferment levels.
According to NSLP, a non-profit student loan guaranty agency, the most common reasons borrowers request a deferment are attending school at least half-time and studying full-time time in a graduate fellowship program. However, there are other circumstances in which borrowers may be eligible for deferment.
If you believe that you’re eligible for deferment, you can visit your student loan servicer’s website to start the application process.
What this calculator will tell you
This student loan deferment calculator will help you determine how much interest your loan will accrue while in deferment. You’ll need to know three things:
(1.) The Deferment Period
This is the number of days for which you plan to defer payments. For example, if you plan to postpone payments for 18 months while in school, you’d enter 540 (days) into the calculator.
(2.) The Loan Amount
This is the balance of your loan at the start of the deferment period.
(3.) The Interest Rate
This is the annual interest rate for your loan.
All calculations assume that interest is capitalized only at the end of the deferment period.
Other things to know
The following are a few tips inspired by frequently asked questions about deferment.
Determining what type of loans you have
The federal government will make interest payments on all Federal Perkins Loans, Direct Subsidized Loans, and Subsidized Federal Stafford Loans during periods of deferment. All unsubsidized loans will continue to accrue interest while in deferment. If you’re unsure what type of loans you have, head over to the NSLDS web site to find out.
Making interest only payments
During deferment, interest will continue to accrue on all unsubsidized loans. At the end of the deferment period, that interest is capitalized, which increases the outstanding balance. Under the Standard Repayment Plan, a higher balance means a higher monthly payment.
One way that borrowers can avoid an increase in monthly payments following a period of deferment is to make interest-only payments while the loan is in deferment. Most student loan servicers will offer you this option along with the initial application for deferment. If they don’t, you can call them to make arrangements.
Determining how much you’ll owe each month after a period of deferment
This calculator will tell you how much interest your loan will accumulate while in deferment as well as how much you’ll owe at the end of the period of deferment. To determine what your monthly payment will be following the deferment period, enter the new balance into the Basic Student Loan Payment Calculator along with the interest rate and loan term in months. (Under the Standard Repayment Plan, payments of a fixed amount are spread out over 120 months.)