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Student Loan Calculator

$
Total amount borrowed
Federal: 5-7% | Private: 4-14%

Enter your loan details to see your repayment plan.

Pro Tip

Pay just $50 extra/month on a $35,000 loan at 6% and you'll save $2,500+ in interest and pay off the loan 2 years early!

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Student Loan Resources:

Note: This calculator provides estimates. Federal loan programs have specific rules; consult StudentAid.gov for official information.

Understanding Student Loans: A Complete Guide

Student loans are a powerful tool to invest in your future, but they come with long-term financial obligations. Understanding the different types of loans, repayment options, and forgiveness programs is essential for managing your debt effectively.

Whether you're a current student planning your borrowing or a graduate managing existing loans, this guide covers everything you need to know.

Federal vs. Private Student Loans

The first rule of student borrowing: Always exhaust federal loan options before considering private loans.

Federal Loans
✓ Advantages
  • Fixed Interest Rates set by Congress
  • Income-Driven Repayment options
  • Loan Forgiveness programs (PSLF, Teacher)
  • Deferment/Forbearance options
  • No credit check (for most)
Types:

Direct Subsidized, Direct Unsubsidized, Direct PLUS, Direct Consolidation

Private Loans
✗ Considerations
  • Variable or Fixed Rates (often higher)
  • No income-driven repayment
  • No forgiveness programs
  • Limited forbearance options
  • Credit check required
When to Consider:

Only after maxing federal loans, if you need more funds, and have excellent credit for a low rate.

Official Resources

Federal Loan Repayment Plans

Choosing the right repayment plan can significantly impact your monthly budget and total cost.

How it works: Fixed monthly payments over 10 years.

Best for: Borrowers who can afford higher payments and want to pay the least total interest.

Example: $35,000 at 6% = ~$389/month, $11,600 total interest.

How it works: Payments start low and increase every 2 years over 10 years.

Best for: New grads expecting income to increase over time.

Note: You'll pay more total interest than Standard plan.

How it works: Fixed or graduated payments over up to 25 years.

Best for: Borrowers with over $30,000 in loans who need lower payments.

Note: Significantly higher total interest paid.

Types: SAVE (newest), PAYE, IBR, ICR

How it works: Payments capped at 10-20% of discretionary income. Recalculated annually.

Forgiveness: Remaining balance forgiven after 20-25 years of payments.

Best for: Low earners, public service workers pursuing PSLF, or those with high debt relative to income.

Loan Forgiveness Programs

Public Service Loan Forgiveness (PSLF)

Eligibility:

  • Work full-time for a qualifying public service employer (government, 501(c)(3) non-profit)
  • Make 120 qualifying payments under an IDR plan
  • Have Direct Loans (or consolidate into Direct)

Result: Remaining balance forgiven after 10 years, tax-free.

Teacher Loan Forgiveness

Eligibility:

  • Teach full-time for 5 consecutive years in a low-income school
  • Teach in a high-need subject (STEM, Special Ed)

Result: Up to $17,500 forgiven for STEM/Special Ed teachers, $5,000 for others.

Strategies to Pay Off Student Loans Faster

Make Extra Payments

Even $50-100 extra per month goes directly to principal and can save thousands in interest. Specify that extra payments go to principal.

Refinance

If you have good credit and stable income, refinancing private loans (or federal if you don't need federal protections) can lower your rate.

Avalanche Method

Pay minimums on all loans, then throw extra money at the loan with the highest interest rate. Saves the most money mathematically.

Frequently Asked Questions

Do both. At minimum, contribute enough to your 401(k) to get any employer match (that's free money!). Then, balance paying extra on loans with the interest rate. If your loans are >6%, prioritize them. If <5%, you might earn more investing.

For Federal Loans: Apply for an Income-Driven Repayment plan, deferment, or forbearance. For Private Loans: Contact your lender immediately to discuss options. Never just stop paying – it damages your credit and can lead to default.

Yes! You can deduct up to $2,500 in student loan interest per year, even if you don't itemize. Income limits apply (phases out above ~$75,000 single, $150,000 married).

Maybe. Direct Consolidation combines federal loans into one payment with a weighted average rate. It can make you eligible for certain IDR plans and PSLF if you have FFEL loans. However, it won't lower your rate and may reset your IDR payment count.

Legal Disclaimer: This calculator provides estimates. Federal student loan rules change frequently. For official information, visit StudentAid.gov.