How to Calculate Student Loan Forbearance Effect on Loan Payoff

Forbearance on your student loan can cost you more money in interest over the life of the loan. Interest accumulated during the forbearance period adds to the balance of your student loan and can change your future monthly payment. Simple multiplication and addition can show you the effect of forbearance on your student loans and you can also find calculators online to help you.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Student loan paperwork
• Current student loan balances
• Current student loan interest rates

1. Check your paperwork to determine the current balance of all your student loans and your current interest rate.

2. Multiply your loan balance by your interest rate. Add the result to your current loan balance to see your new loan balance at the end of the forbearance period.

3. Calculate your future student loan payment by multiplying your new loan balance by your interest rate. Add the result to the new loan balance to give you the total amount you have to repay.

4. Estimate your new student loan payment by dividing the new loan balance by the length of your loan in months.

Tips & Warnings

• Utilize an online calculator to determine the effect forbearance can have on your student loans.
• Don't forget to calculate each loan separately if you have multiple loans with varying interest rates.

Resources

• Visit OneSimpleLoan to calculate student loan forbearance effect
• Go to TGSLC's online calculator for multiple student loans