Can You Pay Interest Only On Student Loans?

You can make interest payments only on student loans to save money. Making these payments before you graduate – or while you’re deferring the repayment – can prevent thousands of dollars in interest from adding to your loan balance.

If you have federal subsidized student loans, interest doesn’t accrue while you’re in school.

But interest still accrues on unsubsidized loans and private student loans. Interest-only payments can keep these debts from snowballing.

Student Loan Interest Payment Calculator Only

Pay off student loan interest before that capitalizes – or is added to your loan balance – decreases the total amount you repay. Use this calculator to estimate your monthly student loan interest payments and how much they could save you in the long run.

When to make student loan payments with interest only

There is never a penalty for prepaying a student loan, and you should consider making interest payments only whenever your loans generate interest and payments are not required. This may include:

  • While you or your child for Parent PLUS Loans is enrolled in school.

  • When you temporarily suspend reimbursement by postponement or by forbearance.

For example, suppose you borrowed a graduate loan PLUS of $ 26,000 at the current interest rate of 5.30% for each year of a two-year program. Each month, $ 117 of interest would accrue on this loan.

By making interest-only payments, you will prevent $ 5,616 from being added to your balance after your grace period ends, and your required payments will drop from $ 620 to $ 559. Even taking into account the interest-only payment amounts, you would end up with over $ 1,600 up front on a 10-year repayment plan.

Keep in mind Bridgepayday identifies payday loans no credit check that subsidized student loans do not earn interest while enrolled at least part-time or on an approved deferral. During these times, making additional payments directly to your principal balance can help minimize the overall amount you pay back.

How to Make Interest Payments Only on Student Loans

You will only make interest payments directly with your student loan manager. Visit their website or contact your service agent to confirm the amount of your interest-only payments and to set up these payments. If you are at school or if you are not sure who your repairer is, you can find out at

There’s no federal student loan repayment plan this allows you to pay only the interest. However, if you opt for a stay or abstention, the app can give you the choice to make interest payments only during this break. Even if you do not select this option, you can still set up these payments with your service agent.

Private student loans can offer – or require – interest payments while you’re in school. They may also have interest-only payment plans after graduation for a while. Contact your lender for more details.

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