Student Loan Repayment Calculator
Student loans are a major financial commitment that affects millions of borrowers. This calculator helps you understand your monthly payment obligations and total repayment cost. Federal student loans typically offer fixed rates and flexible repayment options, while private loans vary by lender and creditworthiness.
The standard repayment term for federal student loans is 10 years, but income-driven repayment plans can extend this to 20-25 years with lower monthly payments. However, longer terms mean significantly more interest paid over time. Federal loans also offer deferment, forbearance, and potential forgiveness programs that private loans don't provide.
Interest on student loans compounds daily, meaning the amount you owe grows continuously. Making payments while in school or during the grace period can save thousands in interest. Prioritize high-interest loans first when making extra payments. Consider refinancing private loans if you have good credit, but be cautious about refinancing federal loans as you'll lose federal protections and benefits.
Quick Tips
- Always compare APR, not just interest rates
- Use the Rule of 72 to estimate doubling time
- Extra payments dramatically reduce total interest
Frequently Asked Questions
If your loan interest rate exceeds potential investment returns (typically 7-8% average), prioritize paying off loans. Also consider loan forgiveness eligibility and tax deductions when deciding.
Federal plans that cap payments at 10-20% of discretionary income. Remaining balance is forgiven after 20-25 years. Good for low income relative to debt, but you'll pay more interest overall.
Yes, up to $2,500 annually if your income is below certain limits ($85,000 single, $170,000 married filing jointly in 2024). This reduces taxable income, not the tax owed directly.
Refinancing private loans with better credit can save significantly. However, refinancing federal loans means losing benefits like income-driven repayment, forbearance, and potential forgiveness.
Make extra payments toward principal, pay biweekly instead of monthly, use windfalls for lump sum payments, and avoid capitalized interest by paying during grace periods.