Student Loan Interest Calculator
Interest Accrual
See how much interest accrues on your student loans daily, monthly, and yearly
In-School Interest Capitalization
Calculate how much interest accrues while you are in school (grace/deferment)
Formula
Daily Interest = Principal x (Annual Rate / 365) | Capitalized Balance = Principal x (1 + Monthly Rate)^months
Frequently Asked Questions
How is student loan interest calculated?
Student loan interest accrues daily using simple interest: Daily Interest = Principal x (Interest Rate / 365). On a $30,000 loan at 5.5%, daily interest is $30,000 x 0.055/365 = $4.52 per day.
What is interest capitalization?
Capitalization is when accrued interest is added to your principal balance. This happens when you enter repayment after deferment, forbearance, or your grace period ends. It means you then pay interest on a larger balance.
What is the difference between subsidized and unsubsidized loans?
Subsidized loans: the government pays interest while you are in school and during grace periods. Unsubsidized loans: interest accrues from the day the loan is disbursed. This difference can add thousands to your balance by graduation.
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