How we worked it out
Updated as you change the numbers.
- Interest while waiting = $30,000.00 × 0.5417% × 30 months = $4,875.00, added to the balance.
- Payment on $34,875.00 over 120 months = $396.00.
Method and assumptions
Interest on unsubsidized federal loans builds up as simple interest during school and the grace period, and is added to the principal (capitalized) when repayment begins. After that, the loan is repaid like any fixed-rate loan. Income-driven repayment plans work differently and are not covered here.
Questions
How much interest builds up on an unsubsidized loan in school?
$30,000 at 6.5% for 2 years plus a 6-month grace period adds $4,875 before you make a payment.
Sources
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.