A student loan deferment calculator has become a popular resource for student loan borrowers.
According to Forbes, the student debt crisis has risen to a staggering $1.5 trillion.
Based on 2018 stats shared by the Board of Governors of the Federal Reserve System, the average outstanding education debt was $32,731 per borrower.
According to some findings reported in a study by Clever, researchers discovered that the national median salary for college graduates was $47,000 per year.
This implies that most borrowers should take time to consider all of their repayment plan options.
Loan deferments are one such option.
However, before you make that decision, use one of these student loan deferment calculators to crunch the numbers.
How Student Loan Deferment Calculator Works
A Student Loan Deferment Calculator shows how your repayment plan and interest would change if you temporarily postponed your student loan payments. For federal student loans, you can often get up to a 3 year deferment period. However, private student loans don’t always have this option.
The deferred payment loan calculator breaks your loan payment schedule down under a deferment plan.
Most calculators will show the monthly payment for each of your respective loans individually, taking into consideration the loan amount, interest rate, loan term, and prepayment.
To be more specific, you will need the following information:
- Amount owed on subsidized loan
- Amount owed on unsubsidized loan
- Deferment period (repayment term in days, months, or years)
- Annual interest rate
Once you have input that data, most calculators will churn out results that tell you:
- How much additional interest (if any) is accrued on your loan during deferment
- New loan balance once interest is added
- Total student loan balance (including both unsubsidized and subsidized loans)
Some people may use the calculator even if they do not have an existing loan.
Most times, they do this to get an idea of what this type of plan may look like before they commit to a loan.
While the loan calculator will issue your results even if the information you enter is made up, try as much as possible to use realistic estimates.
In doing so, you help yourself by generating results that are as close to what may happen in a real setting.
3 Top Student Loan Deferment Calculators
FutureFuel.io’s Reassess tool empowers student loan borrowers to make smarter decisions regarding their alternative repayment options.
It customizes calculations to a borrower’s unique circumstance, based on their marital status, income and state of residence.
Reassess demystifies the eligibility requirements for all government-sponsored repayment plans so you can save time and money. In a matter of minutes, see how much you could save with personalized calculations! The average borrower saves between $260 – $326 per month using FutureFuel.io’s Reassess tool.
Student Loan Hero’s Student Loan Deferment Calculator can be used to check how much interest you might accrue during deferment.
While some loans don’t accrue interest, those that do tend to do it at a fixed interest rate.
Using that rate, the deferment length, repayment term, and your total loan balance, you can calculate your student loan balance and monthly payments before and after deferment.
MagnifyMoney’s Student Loan Deferment Calculator is a relatively simple calculator that provides a rough estimate of your student loan balance and monthly payments before and after deferment.
It also shows you how much money you’ll be saving in total and on monthly payments so you can plan your expenses accordingly.
Just put in your loan balance, average interest rate, deferment length, and the repayment term and it’ll calculate the amounts.
When Should You Take a Deferred Payment Loan?
Applying for deferred payment on your student loan comes with its advantages and disadvantages.
First off, it can prove to be a smart decision if you find it difficult to keep making payments on your loan.
In such cases, the deferment period will give you a financial breather, allowing you to reorganize your money. That way, you can meet your other financial obligations without hurting your pocket.
This makes even more sense if your loans are Perkins or are subsidized by the government. Because these types of loans do not incur any interest payments, the amount that you owe prior to taking a deferral remains the same once the period has elapsed.
Therefore, in theory, you won’t be taking on any more expenses than you initially had. That said, if you do not have Perkins or federally subsidized loans, this may be an expensive option. That’s because this type of program represents additional interest costs that you will have to bear.
Still, depending on your present financial situation, it may still be the best option for you.
If you don’t mind paying more in the long run for temporary financial relief, then a deferred payment is best. It is a better option than forbearance in the sense that you can be granted a longer repayment period.
Start Using a Student Loan Deferment Calculator
In short, a student loan deferment calculator is a useful resource that will help you on your journey towards financial freedom.
If you combine its use with a personalized financial health platform like FutureFuel.io, you could double your efforts and clear your debt faster.