Student Loan Calculator
About Our Smart Student Loan Calculator
Our smart calculator provides instant results and leverages AI to offer personalized insights.
The True Cost of Your Degree
Student loans are often the first major debt for many. But terms like "Capitalization" and "Deferment" can turn a $30,000 loan into a $50,000 burden.
Why This Tool is Critical:
- Deferment Analysis: See exactly how much interest piles up while you are in school or taking a break from payments.
- Capitalization Check: Understand what happens when unpaid interest gets added to your principal (it's not good).
- Payoff Timeline: Find out when you will finally be free of student debt.
What is Student Loan Capitalization?
Capitalization is the process where unpaid interest is added to the principal balance of your loan.
For example, if you defer payments while in grad school, interest keeps growing. When you graduate, that interest isn't just "due"—it becomes part of the loan principal. Future interest is then charged on this higher amount. Our calculator shows you exactly how much this "interest on interest" costs you.
Deferment vs. Forbearance: What's the Difference?
Both allow you to temporarily stop making payments, but the financial impact differs:
Deferment (Subsidized Loans)
Best Scenario. The government pays your interest while you are in school or eligible deferment. Your balance does not grow.
Forbearance (Unsubsidized Loans)
Dangerous Scenario. You stop paying, but interest continues to accrue and will be capitalized at the end. Use our calculator's "Deferment Period" input to simulate this cost.
Federal vs. Private Loans
Knowing your loan type is crucial for using this calculator effectively.
| Loan Type | Interest Rates | Repayment Flexibility |
|---|---|---|
| Federal Direct | Fixed (Congress-set) | High. Income-Driven Repayment (IDR) and Forgiveness (PSLF) options available. |
| Private Loans | Variable or Fixed | Low. Terms are set by banks. Deferment options are limited and almost always capitalize interest. |
How AI Analyzes Your Debt
Click "Get AI Advice" for a personalized strategy:
- Interest-Only Strategy: "AI calculates that paying just $50/month (interest only) during school saves you $2,000 later."
- Refinance Alert: "Your rate is 8%. AI compares this to current market rates and suggests if refinancing could lower your payment."
Disclaimer
The Student Loan Calculator estimates repayment based on the Standard Repayment Plan (fixed payments). It does not simulate Income-Driven Repayment (IDR) plans or Public Service Loan Forgiveness (PSLF). Interest capitalization rules vary by lender and loan type.
Disclaimer & Usage Policy
1. For Reference Only: The calculations, results, and AI-generated insights provided by this tool are for informational and educational purposes only. They represent theoretical outcomes based on user inputs and general assumptions. They do not constitute actionable professional advice, medical diagnosis, or specific financial recommendations.
2. Consult a Professional: Real-world scenarios are complex and subject to changing laws, regulations, and scientific standards. This tool cannot account for your unique individual circumstances. We strongly recommend consulting with a qualified professional (such as a Financial Advisor, CPA, Doctor, or Legal Counsel) before making any actual decisions based on this information.
3. No Liability: By using this tool, you acknowledge that This Website and its affiliates are not liable for any discrepancies, errors, or losses (financial, health-related, or otherwise) arising from the use of or reliance on these tools. You assume full responsibility for your own choices and actions.