See your monthly payments and plan your repayment strategy
| Term | Monthly | Total Interest | Total Paid |
|---|
Even $50 extra per month can save thousands in interest and shave years off your loan.
Paying half your monthly payment every two weeks equals one extra payment per year.
Once you have stable income and good credit, refinancing could lower your rate significantly.
Public Service Loan Forgiveness (PSLF) may forgive loans after 10 years of qualifying payments.
Student loans are a form of financial aid designed to help cover the cost of higher education, including tuition, room and board, books, and other expenses. Unlike grants and scholarships, loans must be repaid with interest after you leave school. Understanding how student loans work is essential for making informed borrowing decisions and creating a solid repayment strategy.
The total cost of a student loan extends far beyond the amount you borrow. Interest accrues over the life of the loan, and depending on the loan type, it may even accrue while you're still in school. A $30,000 loan at 6% interest over 10 years costs about $40,000 total—and stretching to 20 years pushes that to nearly $52,000.
Key terms to understand:
This calculator helps you understand your monthly payment obligations, see how different repayment terms affect total cost, and evaluate whether your expected salary can comfortably support your loan payments.
Our student loan calculator helps you plan for repayment and understand the true cost of borrowing. Here's how to get accurate results:
The calculator shows your monthly payment, total interest paid, and how your debt compares to your expected income—helping you make informed decisions about borrowing and career planning.
Federal Direct Subsidized Loans
For undergraduate students with financial need. The government pays interest while you're in school at least half-time, during grace period, and during deferment. Current rate: 5.50%. Annual limits: $3,500-$5,500 depending on year.
Federal Direct Unsubsidized Loans
Available to all students regardless of need. Interest accrues from disbursement—consider paying interest while in school to avoid capitalization. Current rates: 5.50% (undergraduate), 7.05% (graduate). Higher annual limits than subsidized.
Federal Direct PLUS Loans
For graduate students and parents of undergraduates. Credit check required. Can borrow up to cost of attendance minus other aid. Current rate: 8.05%. Higher rate reflects absence of financial need requirement.
Private Student Loans
From banks, credit unions, and online lenders. Rates vary widely based on credit score (4-14%+). Often require cosigner for students. Fewer protections and repayment options than federal loans. Use only after exhausting federal options.
How much student loan debt is too much?
A common guideline: don't borrow more than your expected first-year salary. If you expect to earn $50,000, try to keep total borrowing under $50,000. Keep monthly payments under 10% of gross income for comfortable repayment. Above 20% creates significant financial stress.
What's the difference between subsidized and unsubsidized loans?
With subsidized loans, the government pays interest while you're in school. With unsubsidized loans, interest accrues immediately and adds to your balance (capitalizes) when repayment begins. Always use subsidized loans first if eligible—they're effectively cheaper.
Should I pay interest while in school?
For unsubsidized loans, yes if possible. Paying even just the interest prevents capitalization. A $20,000 loan at 6.5% accrues about $108/month in interest. If you don't pay it, that interest adds to your principal when repayment starts.
What are income-driven repayment plans?
These federal programs cap payments at a percentage of discretionary income (usually 10-20%) and forgive remaining balance after 20-25 years. Options include SAVE, PAYE, IBR, and ICR. Great for those with high debt relative to income, but may result in paying more interest long-term.
Should I refinance my student loans?
Refinancing can lower your interest rate if you have good credit and stable income. However, refinancing federal loans with a private lender eliminates access to income-driven repayment, deferment, forbearance, and loan forgiveness programs. Only refinance federal loans if you're sure you won't need these protections.
What is Public Service Loan Forgiveness (PSLF)?
PSLF forgives remaining federal loan balances after 120 qualifying payments (10 years) while working for a qualifying employer (government, non-profit). Must be on an income-driven plan with Direct Loans. Tax-free forgiveness. Great for those committed to public service careers.
Is it worth taking out loans for college?
It depends on your field and career prospects. College graduates earn about $1 million more over their lifetime than high school graduates on average. However, this varies dramatically by major and career. Research earning potential for your field and borrow conservatively. Consider community college, in-state schools, and scholarships to minimize borrowing.
Just because you're offered a loan amount doesn't mean you should take it all. Calculate actual costs and borrow the minimum. Every dollar borrowed costs more with interest.
When making extra payments, target the loan with the highest interest rate first. This "avalanche method" minimizes total interest paid over the life of your loans.
Most servicers offer a 0.25% interest rate reduction for autopay enrollment. It also prevents missed payments that can hurt your credit score and add late fees.
Apply tax refunds, bonuses, and gifts to your highest-rate loans. One $3,000 extra payment early in repayment can save hundreds in interest over the loan life.