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Student Financial Assistance
Nova Southeastern University
Horvitz Admin. Bldg, 1st Flr.
3301 College Avenue
Ft. Lauderdale, FL 33314

(954) 262-3380
800-806-3680

Contact Student Financial Assistance

Unsubsidized Direct Loan Scenarios

With an unsubsidized Direct Loan, students can defer payments until after graduation by capitalizing the interest. This adds the interest payments to the loan balance, which increases the size and cost of the loan.

Making interest payments on the Unsubsidized Direct Loan while you are in school rather than deferring the interest, is an effective way to minimize student loan debt.

Below is an example of the difference in cost of an Unsubsidized Direct Loan where interest is paid while the student is in school as compared to the costs of the same loan when the interest is deferred.

Initial Unsubsidized Direct Loan Balance: $31,000

Unsubsidized Direct Loan Interest Rate: 6.8%

Standard Repayment Term: 10 Years

Deferment Period: 48 months

Capitalization Frequency: Quarterly

Unsubsidized Federal Direct Loan Scenarios
Scenario A:

Interest Paid During Enrollment

Scenario B:

Interest Deferred During Enrollment

Unsubsidized Direct Loan balance upon completion of a four year program:

$31,000

Unsubsidized Direct Loan balance upon completion of a four year program:

$40,597.28 (Includes $9,597.28 in accrued interest)

Repayment Amounts:

120 monthly payments of $356.75 for a total payment of $42,810.

Total payment amount includes $8,432 in interest paid while attending school plus $11,810 in interest accumulated during 10 year standard repayment.

Repayment Amounts:

120 monthly payments of $467.19 for a total payment of $56,062.80.

Total payment amount includes $9,597.28 interest accrued during 48 month deferment, plus $15,465.52 in interest accrued during 10 year standard repayment.

Note: The total amount paid with interest capitalization as a result of deferring interest on the unsubsidized loan is $56,062.80. This calculates to $4,820.80 more than would be paid without capitalization (interest is paid while attending school).

Repayment for both Subsidized and Unsubsidized Direct Loans begins six months after the student graduates or drops below half-time enrollment. The standard repayment term is 10 years; however students may have the option of choosing alternate repayment terms by working directly with their lender. Some of these alternate repayment plans include extended, graduated, income contingent, or income-based repayment options.