Accrued Interest Calculator...
Student Loan Deferment Costs?

The accrued interest calculator allows you to see how much college loan debt is added to your original amount with deferred student loans.

Almost every type of college loan can be deferred until after graduation-

both a subsidized and an unsubsidized Stafford loan, parent college loans, private student loans, and most state college loans.

All unsubsidized loans accrue interest while they are being deferred. When it is time to calculate loan repayment, this interest is added to your principal.

For the entire time your loan is in repayment, you will be paying interest on interest.

To figure out how much this is worth:

1. Put in the original loan amount for each year's loans.
2. Figure out how many months of deferment there will be. (Don't forget the 6 month grace period after graduation.)
3. Put in the interest rate. (Federal interest rates or private ones)
4. Choose how often the interest compounds. (Check your master promissory note.)
5. Click "Go".

• $5500
• defer it for 51 months (12 months for the 1st year; 12 months for the 2nd year; 12 months for the 3rd year; 9 months for the 4th year (graduation in May); and 6 months grace period)
• at 6.8% and
• compound it quarterly

Do the amounts for each year's loan on the calculator (remember that the limits change) and then add them together.

And then realize that repayment of interest while in school, is always an option on any loan and that it does not negate your deferment.

If you are wondering, how on earth you would be able to pay the interest on these loans while you are in school, check out the new, refundable college tax credit that can be used by student loan borrowers.