Freddie Mac Student Loans Deferred

Deferred Loan Payment Formula:

\[ PMT = 0 \text{ during deferment} \] \[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \text{ post-deferment} \]

Principal Amount (P):

USD

Annual Interest Rate (APR):

Repayment Term (n):

months

Deferment Period:

months

Monthly Payment (PMT):

Total Interest:

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1. What Are Freddie Mac Student Loans?

Freddie Mac (Federal Home Loan Mortgage Corporation) student loans are private education loans that may offer deferment options while the borrower is in school or during other qualifying periods.

2. How Deferred Payments Work

During deferment, no payments are required but interest may continue to accrue. After deferment ends, regular payments begin based on the remaining term.

3. Payment Calculation Explained

The calculator uses the standard loan payment formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( P \) — Principal loan amount
\( r \) — Monthly interest rate (APR/12)
\( n \) — Number of monthly payments
\( PMT \) — Monthly payment amount

Note: Interest that accrues during deferment may be capitalized (added to principal) when repayment begins.

4. Using This Calculator

Instructions: Enter the principal amount, annual interest rate (APR), repayment term in months, and optional deferment period. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does interest accrue during deferment?
A: Typically yes, unless you have a subsidized loan. Check your loan terms to confirm.

Q2: How does deferment affect total loan cost?
A: Deferment increases total cost because interest accrues and may be capitalized.

Q3: Can I make payments during deferment?
A: Yes, making payments during deferment reduces interest accrual and total cost.

Q4: What's the difference between deferment and forbearance?
A: Deferment is typically for specific qualifying situations, while forbearance is at the lender's discretion.

Q5: How accurate is this calculator?
A: It provides estimates; actual payments may vary based on loan terms and rounding methods.