Unsubsidized
Federal Stafford Loan is unlike the subsidized Federal Stafford Loan. Students
who borrow through the unsubsidized loan program are immediately responsible
for the interest that begins to accrue on their loan. Students may choose
to...
-
defer (postpone) the accruing interest
while they are enrolled in school, OR
-
pay the interest charges monthly OR
quarterly.
Prior to July 1, 2006, the interest rate was variable
with an 8.25 percent cap. The interest rate for loans disbursed after July 1,
2006 is fixed at 6.8%. To estimate the interest payments on an UNSUBSIDIZED
Federal
Stafford Loan, you may use the chart below. The chart below will give you an estimate of how much the monthly
interest charge will be:
APPROXIMATE MONTHLY INTEREST
| LOAN AMOUNT |
7.0% |
8.0% |
8.25% |
| $2,625 |
$15.32 |
$17.49 |
$17.79 |
| $3,500 |
$20.42 |
$23.33 |
$23.72 |
| $5,500 |
$32.08 |
$36.67 |
$37.27 |
| $8,500 |
$49.58 |
$56.67 |
$57.60 |
| $10,000 |
$58.34 |
$66.66 |
$67.76 |
| $18,500 |
$107.92 |
$123.33 |
$125.36 |
If you pay the interest monthly or quarterly, the original
loan amount that you borrowed (the principal) remains the same until you
enter repayment. There is no accrued interest or capitalization of interest
because you have paid it monthly.
When you defer the interest charges until after you leave
school, the accrued interest will be capitalized to your principal loan
amount. Capitalization can be costly if done often; check with your lender
about their capitalization policy prior to applying for the loan. Remember,
you must request the deferment on the loan application.
If you want to calculate your monthly repayment
amount, visit the calculators. This will give you an idea of how much your monthly payment
will be when you begin repayment.) |
