Annual Interest Charges Calculator

Instructions: Use this calculator to determine how much interest will accrue on an unsubsidized or PLUS loan in one year.

Amount Borrowed		Log in to Banner to view how much you borrowed this year NSLDS
Interest Rate		A 4.66% rate has been pre-populated. Review current and historical interest rates and adjust as needed.
Accrued Interest		Amount borrowed x Interest Rate

Comments:
© Christine Auman

Definitions

Capitalization: The addition of unpaid interest to the principal balance of a loan. When the interest is not paid as it accrues during periods of in-school status, the grace period, deferment, or forbearance, your lender may capitalize the interest. This increases the outstanding principal amount due on the loan and may cause your monthly payment amount to increase. Interest is then charged on that higher principal balance, increasing the overall cost of the loan.
Interest A loan expense charged for the use of borrowed money. Interest is paid by a borrower to a lender. The expense is calculated as a percentage of the unpaid principal amount of the loan.
Unsubsidized Loan A loan for which the borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues throughout the life of the loan.

There are no penalties to pre-pay federal student loans. Determine your loan servicer at NSLDS and then contact your servicer to learn how to make payments.
As a rule of thumb, do not borrow more in loans than your expected starting salary upon graduation.
- Review starting salaries: Occupational Outlook Handbook
The Federal Government offers many repayment plans and forgiveness options to best suit a students need.
Use the federal government's Repayment Plan Calculator to compare your monthly payments under the various repayment plans.