Simple Daily Interest Calculation
Log In to Use the Interest Estimator
The amount of interest that accrues on your loan is determined by a simple daily interest calculation, which you can estimate as follows:
Approximate Daily Interest
= (Unpaid Principal balance x Interest Rate)
÷ Number of Days in the Year
If you have multiple student loans, you likely have multiple interest rates.
To make it easier, log in to your account and use the Interest Estimator tool, which uses your current loan balances and interest rates to estimate interest accrual for you.
Go to the Tools & Requests page and select Interest Estimator. Once you are in the tool, select the number of days – up to 31 days in the future – and then Calculate to see how much interest is accruing on each of your loans for a given time period.
Log In to View Your Account History
Interest capitalization is when Unpaid Interest is added to the Unpaid Principal. This occurs at certain times during the life of the loan, typically at the end of the grace period, a deferment, or a forbearance. Depending on your loan program and promissory note, interest may also be capitalized periodically during certain periods when payments are postponed and in connection with certain repayment plans.
Capitalization will cause the principal balance to increase, and future interest will accrue on that larger balance.
To minimize the effects of the capitalized interest on the amount you'll pay overall, you can pay the interest before it is capitalized. For example, you can pay the interest while you're in school instead of waiting until after graduation.
You can see any capitalized interest amounts in your Account History.