Step 1: Loan & Interest Accrual Details

Enter details about your loan and a period during which interest might accrue without payments (e.g., an in-school period for student loans, a forbearance period).

Duration when interest accrues but isn't paid, leading to potential capitalization (e.g., 4 years in school + 0.5 year grace).
The term over which you will repay the loan principal (original or capitalized).

Step 2: Estimated Impact of Interest Capitalization

What is Interest Capitalization?

Interest capitalization occurs when unpaid accrued interest is added to the principal balance of your loan. Future interest then accrues on this new, larger principal. This typically happens after periods like deferment, forbearance, or (for unsubsidized student loans) after in-school and grace periods if interest wasn't paid.

Scenario 1: WITHOUT Capitalization

(Assumes interest accrued during the "accrual period" was paid off separately or did not accrue against you, e.g., subsidized loan during eligible periods).

Scenario 2: WITH Capitalization

(Assumes interest accrued during the "accrual period" is added to the principal before repayment begins).

Impact of Capitalization Summary:

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