1. What is the Student Loan Calculator With Deferment?

This calculator helps estimate payments for student loans that have a deferment period, during which payments may be postponed but interest may still accrue (for unsubsidized loans).

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment amount
• \( P \) — Principal loan amount (adjusted for accrued interest if unsubsidized)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of payments in repayment term

Explanation: For unsubsidized loans, interest accrues during deferment and is added to the principal before calculating payments.

3. Importance of Loan Calculation

Details: Understanding your future loan payments helps with financial planning and comparing different loan options.

4. Using the Calculator

Tips: Enter the principal amount, annual interest rate, deferment period, repayment term, and select loan type. All values must be valid (principal > 0, rate ≥ 0, term > 0).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between subsidized and unsubsidized loans?
A: Subsidized loans don't accrue interest during deferment periods (like while in school), while unsubsidized loans do.

Q2: How does deferment affect total loan cost?
A: For unsubsidized loans, deferment increases total cost due to interest capitalization (adding accrued interest to principal).

Q3: What's a typical student loan term?
A: Standard terms are 10 years (120 months), but extended plans may go up to 25 years (300 months).

Q4: Should I pay during deferment if possible?
A: Even small payments during deferment on unsubsidized loans can significantly reduce total interest paid.

Q5: Are there prepayment penalties?
A: Federal student loans don't have prepayment penalties - you can pay extra anytime to reduce total interest.