Office of Student Aid : Loans : Federal Direct Stafford Loan : Repayment Comparison

Federal Direct Stafford Unsubsidized Loan Repayment Comparison

Direct Stafford Loan Repayment Comparison Chart
	With Interest Capitalization (i.e., interest not paid while in school)	Without Interest Capitalization (i.e., interest paid while in school)
Original Loan Balance	$10,000.00	$10,000.00
Capitalized Interest	$4,800.00	$0.00**
Current Loan Balance	$14,800.00	$10,000.00
Interest Rate	6.8%	6.8%
Maximum Term	120 months	120 months
Level Repayment Schedule Installment:
119 months	$170.32	$115.08
1 month	$169.09	$114.24
Total Repayment Interest	$5,637.17	$3,808.76**
Total Repayment Amount	$20,437.17	$13,808.76

**It is beneficial for borrowers to make their interest payments because the loan will disclose at a lower balance. In this comparison, the monthly installment is $55.24 less and the total repayment at the end of the life of the loan is a savings of $1,828.41 in interest.

Office of Student Aid : Loans : Federal Direct Stafford Loan : Repayment Comparison

Federal Direct Stafford Unsubsidized Loan Repayment Comparison

With Interest Capitalization (i.e., interest not paid while in school)

Without Interest Capitalization (i.e., interest paid while in school)

$10,000.00

$10,000.00

$4,800.00

$0.00**

$14,800.00

$10,000.00

6.8%

6.8%

120 months

120 months

$170.32

$115.08

$169.09

$114.24

$5,637.17

$3,808.76**

$20,437.17

$13,808.76

With Interest Capitalization
(i.e., interest not paid while in school)

Without Interest Capitalization
(i.e., interest paid while in school)