How this calculator works
Unsubsidized loans and loans in forbearance keep accruing simple interest while paused, and that interest is added to the balance when repayment resumes. Subsidized loans in deferment don't accrue interest. The new payment is calculated on the higher balance.
Worked example
With the example values below: Interest that accrues, $1,950 (added to your balance when repayment resumes). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Loan balance | $30,000 |
| Interest rate | 6.5% |
| Months paused | 12 mos |
| Interest covered? | No (unsubsidized or forbearance) |
| Years left to repay after pause | 10 yrs |
Deferment vs. forbearance
Both let you pause federal student loan payments. Deferment is for specific situations, such as being in school at least half time, unemployment or economic hardship, active military service or cancer treatment. During deferment, subsidized loans don't accrue interest.
Forbearance is for broader financial difficulty, granted by your servicer, and interest accrues on all loan types. It's usually limited in length, so use it for short-term problems.
How much interest builds up
Interest accrues daily at the rate divided by 365.25 on the principal. On $25,000 at 6.5%, that's about $4.45 a day, or about $1,625 over a 12-month pause. That interest may be added to your balance when payments resume, after which you're charged interest on it too.
This calculator shows the new balance and how much your payment rises if the unpaid interest is added. Paying the interest during the pause, even partly, keeps the balance from growing.
Changes for new loans
Under the 2025 federal law, economic hardship and unemployment deferments are being eliminated for loans made on or after July 1, 2027, and forbearance on those loans is limited to nine months in any 24-month period. Existing loans keep their current options.
Because the rules are changing, check your servicer's current guidance before relying on a pause.
Alternatives to pausing payments
Compare options in the income-driven repayment calculator, and see the daily student loan interest calculator for how interest accrues.
- An income-based plan can set a payment as low as $10 a month (RAP) or $0 (legacy plans) while still counting toward forgiveness.
- Under RAP, unpaid interest on on-time payments is waived, which can cost less than forbearance.
- A short forbearance can still make sense for a brief, temporary gap.
Frequently asked questions
Does interest accrue during student loan deferment?
On unsubsidized, PLUS and private loans, yes. Subsidized federal loans don't accrue interest during most deferments. All federal loans accrue interest during forbearance.
How much interest will build up during forbearance?
Balance × rate ÷ 365.25 × days paused. On $25,000 at 6.5%, a 12-month pause adds about $1,625.
Is deferment or forbearance better?
Deferment is usually better if you qualify, because subsidized loans don't accrue interest. An income-driven plan is often better than either, since low payments still count toward forgiveness.
Does deferment hurt your credit?
No. Approved deferment or forbearance is reported as current, not late. Missed payments without an approved pause do hurt your credit.
What is interest capitalization?
Adding unpaid interest to your principal balance. After capitalization you pay interest on the larger balance, which increases the total cost of the loan.
Grow what this calculator projects.
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Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.