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How Much You Can Expect to Borrow
4
Estimate Your Annual and The Di!erence Between What The Impact of Interest Making Payments While in
Total Student Loan Debt You're O!ered and What You School
Need
Consider Paying Interest While in School
What if you paid the interest as it accrues while you're still in school? What if you don't and allow it to accrue? Find out
how paying interest while you're in school can decrease the amount you pay per month while in repayment.
Later, we'll discuss repayment plans that are available and the impact they have on the interest you’ll pay over time.
Example Scenario
Jane takes out loans and graduates from a four-year program with $27,000 in unsubsidized student
loans at the end of her grace period.
If Jane does not pay the interest that accrues on her loans while she is in school, the interest will be
added to the total loan amount that Jane owes and may increase the amount she must pay each
month, depending on the repayment plan she chooses.
Lowest Interest Paid
Pay Interest as It Accrues Pay No Interest and Pay It Ove
Pay More Monthly
Lower Monthly Payments
Pay More Overall
Lower Overall Paid
Principal Balance
Principal Balance $27,000
Interest Accrued While in School and During Grace Period
Interest Accrued While in School and During Grace Period $5,504
(4 years and 6 months of 4.53% interest accrual)
(4 years and 6 months of 4.53% interest accrual)
Interest Paid While in School and During Grace Period
Interest Paid While in School and During Grace Period -$5,504
Loan Balance at Repayment Start (principal and non-capitalized interest)
Loan Balance at Repayment Start $27,000
Monthly Payment
Monthly Payment $280
Total Cost with Accrued Interest
Total Cost with Accrued Interest $39,130
Lower Monthly Payment by
$55
$55
Total You Save $1,042
The above interest amounts are based on a Standard Repayment Plan and 4.53% interest rate for each of the four years,
which results in the least interest being paid over the course of a 10-year repayment period.
For additional resources on your loan’s capitalized interest, visit Loan Simulator.
Want to Do More?
You can pay down both interest and principal while you're in school. This further reduces the total amount you
will pay over time.
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