What deferment does to the starting balance
During deferment, the current balance earns simple monthly interest at annual rate divided by 12. That accrued amount is added to the repayment starting balance, which is then amortized over the selected repayment term. The calculation makes the delay visible before repayment begins.
Six months before repayment
A $30,000 balance at 5.5% accrues $825 over six months of deferment, becoming $30,825. Amortizing that figure for ten years gives a $334.53 payment and $9,318.87 of modeled repayment-period interest.
Program rules that can change the result
The deferment portion assumes interest accrues but no payment is made, and it assumes the accrued amount is capitalized when repayment starts. Actual student-loan programs may subsidize some interest, use a grace-period rule, or capitalize at a different time.
Why the original balance is not enough
The common error is to model only the original balance. Even a short pause can make every later installment larger because the repayment formula starts from the increased balance rather than the balance before deferment.
Repayment options outside this page
Income-driven plans, forgiveness programs, consolidation, changing rates, tax treatment, and servicer allocation rules are not represented. A federal or private loan statement may contain program conditions that override this simplified timing model.
Using a servicer record
Use this page to see the cost of delaying a conventional repayment plan. For an enrollment change or repayment-plan decision, verify eligibility and accrued-interest treatment with the servicer before relying on the result.
Interest during a pause
The six-month default adds $137.50 of simple interest each month before repayment, not a single charge at the end. Paying that accruing interest as it appears would leave the repayment starting balance closer to $30,000, subject to the program's rules. That contrast is useful for judging a voluntary interest payment during a period when regular installments are paused.
Separate eligible relief from arithmetic
Whether interest is subsidized or forgiven is a program question, not a percentage-input question. Record the loan type and status before using a deferment estimate to decide between repayment options. Keep the program notice.
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It is an educational estimate, not financial, tax, or legal advice.