Student Loan Calculator
Use this comprehensive student loan calculator to evaluate loan payments, repayment options, and debt projections. Calculate monthly payments, compare payoff scenarios, and understand total interest costs.
Result
Principal vs Interest
Pay off in 6 years and 2 months
Result
Principal vs Interest
* For some direct subsidized loans, you do not need to pay interest during school years or the grace period.
* This calculator assumes loans to be repaid each month equally right after graduation or grace period. It also does not take into account any loan fees.
Frequently Asked Questions
Monthly student loan payments are calculated using the standard amortizing loan formula:
Where:
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of months to repay
Example: $30,000 loan at 6.8% for 10 years:
Total payments = $41,428.92
Total interest = $11,428.92
A grace period is the time between graduation (or leaving school) and when loan repayment must begin. Most federal student loans have a 6-month grace period.
Important considerations:
- Unsubsidized Loans: Interest continues to accrue during grace period
- Subsidized Loans: Government pays interest during grace period (no accrual)
- Private Loans: Grace periods vary by lender
- Voluntary Payments: You can make payments during grace period to reduce total interest
Extra payments significantly reduce total interest and shorten the repayment period:
Standard payment: $345.24/month
With $150 extra per month: $495.24/month
Original payoff: 10 years, $11,428.92 interest
With extra: 6 years 2 months, $6,767.26 interest
Interest saved: $4,661.66
Even small extra payments accumulate significant savings over time through reduced interest accrual.
Federal Student Loans:
- Fixed interest rates set by Congress
- Income-driven repayment options
- Loan forgiveness programs available
- Deferment and forbearance options
- No credit check required
Private Student Loans:
- Variable or fixed interest rates
- Based on creditworthiness
- Limited repayment flexibility
- No forgiveness programs
- Fewer consumer protections
Recommendation: Exhaust federal loans first before considering private loans.
Federal Repayment Plans:
- Standard Repayment: 10 years, fixed payments, highest monthly but lowest total interest
- Graduated Repayment: 10 years, lower initial payments increasing every 2 years
- Income-Driven Plans: Payment based on income (20-25 year terms)
- Extended Repayment: 25 years, lower monthly payments
Choice Strategy: Standard plan minimizes interest. Income-driven plans help if income is low. Graduated works well if income increases predictably.
Interest capitalization occurs when unpaid interest is added to your loan principal, causing future interest to be calculated on a larger amount.
When capitalization occurs:
- At the end of grace period (for loans where interest accrued)
- When transitioning between repayment plans
- When exiting deferment or forbearance
- At consolidation
Impact: Makes total debt larger and increases total interest paid. Paying interest during school/grace period prevents capitalization.
Yes, several federal student loan forgiveness programs exist:
- Public Service Loan Forgiveness (PSLF): After 10 years in qualifying public service jobs, remaining balance is forgiven
- Income-Driven Repayment Forgiveness: After 20-25 years of payments under income-driven plans, remaining balance is forgiven
- Temporary Programs: Various temporary forgiveness programs have been implemented
- Teacher Loan Forgiveness: Up to $17,500 for teachers in low-income schools
Note: Forgiven amounts may be taxable income in some cases.
Use the Student Loan Projection Calculator to estimate total debt. The calculator accounts for:
- Current loan balance already borrowed
- Additional loans each year of remaining college
- Interest accrual during school (for unsubsidized loans)
- Interest accrual during grace period
- Interest capitalization at end of grace period
Example: Borrowing $10,000/year for 2 more years with existing $20,000 balance may result in $44,000+ total debt after grace period due to interest accrual.
