Our student loan calculator helps you estimate monthly payments, total interest costs, and explore repayment strategies to manage your student debt effectively. Whether you're planning for college, currently in school, or already in repayment, this calculator provides valuable insights to make informed decisions about your education financing.
Our simple student loan calculator helps you understand your loan terms and monthly payments. Please provide any three values below to calculate the fourth.
Use this calculator to evaluate different student loan payoff strategies and see how much interest you can save. The remaining balance, monthly payment, and interest rate can be found on your monthly student loan statement.
Use this calculator to estimate your loan balance and repayment obligations after graduation. This tool is especially helpful for students still in college or those who haven't started yet. Before estimating, you may want to consult our College Cost Calculator to get a better idea of your total education expenses.
Student loans have become an essential financial tool for millions of Americans pursuing higher education. With the rising costs of college tuition and related expenses, understanding how student loans work, the various types available, and effective repayment strategies is crucial for making informed decisions about financing your education.
The student loan market in the United States has grown dramatically over the past few decades, with total student loan debt reaching approximately $1.75 trillion in 2023. This makes it the second-largest category of consumer debt, behind only mortgage debt. More than 43 million Americans carry student loan debt, with the average borrower owing around $37,000.
Several factors have contributed to this growth, including:
Despite the financial burden, higher education remains a valuable investment for many. College graduates typically earn significantly more over their lifetimes than those with only a high school diploma—a gap that has widened in recent decades. According to the Bureau of Labor Statistics, workers with a bachelor's degree earn a median of about 65% more than those with only a high school diploma.
Student loans in the United States fall into two main categories: federal loans provided by the government and private loans offered by banks, credit unions, and other financial institutions. Each type has distinct characteristics, terms, and benefits.
Federal student loans are the most common type, accounting for approximately 92% of all student loan debt. These loans are funded by the federal government and offer several advantages over private loans, including fixed interest rates, income-driven repayment plans, loan forgiveness options, and deferment or forbearance possibilities during financial hardship.
The main types of federal student loans include:
These loans are available to undergraduate students with demonstrated financial need. The federal government pays the interest on these loans while the student is in school at least half-time, during the six-month grace period after graduation, and during periods of deferment. This subsidy makes them the most affordable option for eligible students.
Available to both undergraduate and graduate students regardless of financial need, these loans accrue interest from the moment they are disbursed. While students aren't required to make payments while in school, the accumulated interest will be capitalized (added to the principal balance) when repayment begins, increasing the total cost of the loan.
These loans are available to graduate or professional students (Grad PLUS) and parents of dependent undergraduate students (Parent PLUS). Unlike other federal student loans, PLUS loans require a credit check, and borrowers with adverse credit histories may be denied unless they can secure an endorser (similar to a co-signer). PLUS loans typically have higher interest rates than Direct Subsidized and Unsubsidized Loans.
These loans allow borrowers to combine multiple federal student loans into a single loan with a fixed interest rate based on the weighted average of the interest rates on the consolidated loans. While consolidation can simplify repayment by providing a single monthly payment, it may extend the repayment period, potentially increasing the total interest paid over the life of the loan.
Private student loans are offered by banks, credit unions, online lenders, and other financial institutions. These loans typically require a credit check and often a co-signer for students with limited credit history or income. Private loans generally have less favorable terms than federal loans, including:
However, private loans can be useful for students who have exhausted their federal loan eligibility or who may qualify for lower interest rates based on excellent credit. Some private lenders also offer specialized loan products for specific professions or educational programs.
Interest is the cost of borrowing money, expressed as a percentage of the loan amount. For student loans, interest typically accrues daily and is calculated using a simple daily interest formula:
Daily Interest = (Outstanding Principal Balance × Interest Rate) ÷ 365
This daily interest is then multiplied by the number of days in the billing period to determine the interest amount for that period. Understanding how interest works is crucial for managing student loan costs effectively.
Federal student loans have fixed interest rates that remain constant for the life of the loan. These rates are set by Congress and vary based on the type of loan and when it was disbursed. Private student loans may offer either fixed or variable rates. Variable rates typically start lower than fixed rates but can increase over time based on market conditions, potentially leading to higher costs in the long run.
When unpaid interest is added to the principal balance of a loan, it's called capitalization. This typically occurs when a loan enters repayment after periods of deferment or forbearance where interest was accruing but not being paid. Capitalization increases the principal balance, which means future interest calculations will be based on a higher amount, increasing the total cost of the loan.
The power of compound interest means that even small differences in interest rates can lead to significant differences in the total amount repaid over the life of a student loan. For example, on a $30,000 loan with a 10-year term, the difference between a 5% and a 7% interest rate amounts to more than $3,600 in additional interest over the life of the loan.
Federal student loans offer a variety of repayment plans designed to accommodate different financial situations. Understanding these options can help borrowers manage their debt more effectively and potentially save money over time.
This is the default plan for federal student loans, with fixed monthly payments designed to pay off the loan in 10 years. While this plan results in the highest monthly payments, it also minimizes the total interest paid over the life of the loan.
This plan starts with lower monthly payments that increase every two years, still aiming to pay off the loan within 10 years. It's designed for borrowers who expect their income to increase steadily over time. While the initial payments are lower than with the Standard plan, the total interest paid will be higher.
Borrowers with more than $30,000 in federal student loan debt can extend their repayment period to up to 25 years, resulting in lower monthly payments but significantly more interest paid over the life of the loan. This plan may offer either fixed or graduated payments.
These plans set monthly payments based on the borrower's income and family size, with any remaining balance forgiven after 20-25 years of qualifying payments. There are several types of income-driven plans:
after 20-25 years of qualifying payments. There are several types of income-driven plans:Income-driven plans are particularly beneficial for borrowers with high debt relative to their income, those pursuing Public Service Loan Forgiveness, or those with variable or uncertain income.
Several programs offer forgiveness of federal student loans under specific circumstances:
Beyond selecting the appropriate repayment plan, several strategies can help borrowers manage their student loans more effectively:
Paying more than the minimum monthly payment can significantly reduce the total interest paid and shorten the repayment period. Even small additional amounts can make a substantial difference over time. For example, paying an extra $50 per month on a $30,000 loan with a 6% interest rate could save over $3,000 in interest and pay off the loan nearly two years earlier.
If you have multiple student loans with different interest rates, focusing extra payments on the highest-interest loans first (while maintaining minimum payments on all others) can minimize the total interest paid. This approach, known as the "avalanche method," is mathematically the most efficient way to reduce debt.
Borrowers with good credit and stable income may be able to refinance their student loans with a private lender to secure a lower interest rate. However, refinancing federal loans means losing access to federal benefits like income-driven repayment plans and loan forgiveness programs, so this strategy should be approached cautiously.
Many loan servicers offer an interest rate reduction (typically 0.25%) for borrowers who set up automatic payments. This not only saves money but also ensures payments are never missed, protecting your credit score and avoiding late fees.
The student loan interest deduction allows eligible borrowers to deduct up to $2,500 of interest paid on qualified student loans from their taxable income. This benefit phases out at higher income levels but can provide meaningful tax savings for many borrowers.
Even with careful planning, many borrowers face periods of financial hardship that make student loan payments difficult. Federal student loans offer several options for temporary relief:
Deferment allows borrowers to temporarily postpone payments on their federal student loans for up to three years under certain circumstances, including enrollment in school, unemployment, economic hardship, military service, and Peace Corps service. For subsidized loans, interest does not accrue during deferment, making this the most favorable option when available.
Forbearance also allows borrowers to temporarily postpone or reduce payments, typically for up to 12 months at a time. Unlike deferment, interest continues to accrue on all loan types during forbearance and will be capitalized when repayment resumes, increasing the total cost of the loan.
Borrowers already on an income-driven repayment plan can request a recalculation of their payment amount if their income or family size changes. In cases of very low income, payments can be as low as $0 while still counting as qualifying payments toward loan forgiveness.
For borrowers who have already defaulted on their federal student loans, rehabilitation offers a path back to good standing. This typically involves making nine consecutive, reasonable, and affordable monthly payments as determined by the loan holder. After successful rehabilitation, the default status is removed from the borrower's credit history.
Our comprehensive Student Loan Calculator offers three powerful tools to help you manage your education debt effectively:
This calculator helps you understand the basic terms of your loan. By entering any three of the four values (loan balance, term, interest rate, or monthly payment), the calculator will compute the fourth value. This is particularly useful for determining what your monthly payment will be based on your loan amount and terms, or for figuring out how much you can borrow based on what you can afford to pay each month.
This tool allows you to evaluate different repayment strategies and see how much interest you can save. You can compare the impact of making extra payments, paying off your loan altogether, or sticking with your current repayment plan. The calculator clearly shows how much time and money you can save with each approach, helping you make informed decisions about your repayment strategy.
For current students or those planning to attend college, this calculator estimates your loan balance and repayment obligations after graduation. By entering information about your current loans, future borrowing plans, and whether you'll pay interest during school, you can get a realistic picture of what your debt will look like when you graduate and begin repayment.
The student loan landscape continues to evolve, with ongoing policy discussions about potential reforms to address the growing burden of student debt. Some developments and proposals include:
Recent years have seen expanded loan forgiveness programs, including targeted relief for borrowers who attended institutions with fraudulent practices and broader forgiveness initiatives. Policy discussions continue regarding the possibility of more widespread loan forgiveness.
Efforts are underway to streamline the complex array of repayment plans, potentially consolidating the various income-driven options into a single, more straightforward plan with improved terms for borrowers.
Various proposals aim to address the root cause of student debt by making college more affordable, including free community college, expanded Pell Grants, and state-level programs to reduce or eliminate tuition at public institutions.
New approaches to education financing are emerging, including income share agreements (where students pledge a percentage of future income rather than taking on traditional debt) and employer-sponsored student loan repayment benefits.
Student loans represent a significant financial commitment that can impact borrowers for decades after graduation. By understanding the different types of loans available, how interest works, and the various repayment options and strategies, borrowers can make informed decisions that minimize costs and align with their financial goals.
Our Student Loan Calculator provides a valuable tool for exploring different scenarios and developing a personalized approach to managing education debt. Whether you're planning for future education expenses, currently in school, or already in repayment, taking a proactive approach to student loan management can lead to substantial savings and greater financial freedom.
Remember that student loans, when used wisely to finance education that leads to improved career prospects and earning potential, can be a worthwhile investment in your future. The key is to borrow only what you need, understand the terms of your loans, and develop a strategic repayment plan that works for your individual circumstances.
Determining the appropriate amount to borrow requires careful consideration of several factors. Start by calculating your total cost of attendance (tuition, fees, room, board, books, and personal expenses) and subtract any scholarships, grants, work-study, and personal savings. While it may be tempting to borrow the maximum amount available, it's wise to borrow only what you absolutely need. A good rule of thumb is to keep your total student loan debt below your expected first-year salary after graduation. Research typical starting salaries in your intended field to set a reasonable borrowing limit. Also consider using our College Cost Calculator to project your total educational expenses and develop a comprehensive financing plan that minimizes debt while ensuring you have sufficient funds to complete your degree.
The key difference between subsidized and unsubsidized federal student loans is who pays the interest during certain periods. With Direct Subsidized Loans, the federal government pays the interest while you're in school at least half-time, during the six-month grace period after you leave school, and during periods of deferment. This makes subsidized loans significantly less expensive over time. With Direct Unsubsidized Loans, you're responsible for all interest from the moment the loan is disbursed. If you don't pay this interest while in school, during the grace period, or during deferment or forbearance, it will capitalize (be added to your principal balance), increasing the total cost of your loan. Subsidized loans are only available to undergraduate students with demonstrated financial need, while unsubsidized loans are available to both undergraduate and graduate students regardless of financial need.
Several strategies can help reduce the total cost of your student loans. First, make payments during school if possible, even small amounts, to prevent interest from accumulating and capitalizing. Second, consider making extra payments toward your principal balance after graduation—even an additional $50-100 per month can significantly reduce the total interest paid over the life of the loan. Third, set up automatic payments, which often come with a 0.25% interest rate reduction from most loan servicers. Fourth, explore refinancing options if you have good credit and a stable income, but be cautious about refinancing federal loans as you'll lose access to federal benefits. Fifth, take advantage of tax benefits like the student loan interest deduction. Finally, investigate loan forgiveness programs you might qualify for based on your profession or workplace. Using our Student Loan Calculator can help you quantify the savings from these different approaches and develop the most cost-effective repayment strategy for your situation.
The choice between income-driven repayment (IDR) plans and the standard 10-year repayment plan depends on your specific financial situation and career path. The standard plan results in higher monthly payments but lower total interest costs and a faster path to debt freedom. It's generally the best choice if you can comfortably afford the monthly payments and want to minimize the total cost of your loans. Income-driven plans, which set payments at 10-20% of your discretionary income, are beneficial if your debt is high relative to your income, your income is variable or uncertain, or you're pursuing Public Service Loan Forgiveness. While IDR plans offer lower monthly payments, they typically result in more interest paid over time unless you qualify for loan forgiveness. Use our Student Loan Calculator to compare the total costs under different repayment scenarios, and remember that you can switch between plans as your financial situation changes.
Student loan refinancing involves taking out a new loan with a private lender to pay off your existing student loans, ideally at a lower interest rate. This can reduce your monthly payment, decrease the total interest paid, or both. Refinancing is typically best for borrowers with good credit scores (usually 650+), stable income, and a low debt-to-income ratio. It's particularly advantageous if you have high-interest private loans or if interest rates have decreased significantly since you took out your original loans. However, refinancing federal student loans means permanently losing access to federal benefits like income-driven repayment plans, loan forgiveness programs, and generous deferment and forbearance options. Before refinancing federal loans, carefully consider whether these benefits might be valuable to you in the future, especially if you work in public service or have an uncertain income trajectory. Our Student Loan Calculator can help you compare the costs of your current loans versus refinancing options.
If you're struggling to make student loan payments, it's important to act quickly rather than simply missing payments, which can damage your credit and lead to default. For federal loans, several options exist: First, consider switching to an income-driven repayment plan, which can reduce your monthly payment based on your income and family size—potentially as low as $0 if your income is below certain thresholds. Second, you may qualify for deferment or forbearance, which temporarily postpone payments, though interest may continue to accrue. Third, contact your loan servicer to discuss other potential solutions specific to your situation. For private loans, options are more limited but may include temporary hardship programs, interest-only payments, or refinancing to a longer term. The worst approach is ignoring the problem, as defaulted student loans can lead to wage garnishment, tax refund interception, and other serious consequences that are difficult to resolve.
Student loans can significantly impact your credit score in several ways. On the positive side, making consistent, on-time payments helps build a strong payment history, which accounts for about 35% of your FICO score. Student loans also contribute to your credit mix, which makes up about 10% of your score. Having installment loans (like student loans) alongside revolving credit (like credit cards) can positively affect your score. However, student loans can negatively impact your credit if you make late payments or default. Even a single payment that's 30 days late can lower your score substantially and remain on your credit report for seven years. Additionally, large student loan balances increase your debt-to-income ratio, which may make it harder to qualify for other loans like mortgages, even if they don't directly lower your credit score. To maximize the positive impact of student loans on your credit, set up automatic payments to ensure timeliness and consider income-driven repayment plans if the standard payments are unaffordable.
Public Service Loan Forgiveness (PSLF) is a federal program that forgives the remaining balance on Direct Loans after you make 120 qualifying monthly payments (10 years) while working full-time for a qualifying employer. Qualifying employers include government organizations (federal, state, local, or tribal), non-profit organizations with 501(c)(3) tax-exempt status, and certain other non-profits that provide qualifying public services. To qualify, you must: 1) Have Direct Loans (or consolidate other federal loans into a Direct Consolidation Loan), 2) Be enrolled in an income-driven repayment plan, 3) Make 120 qualifying payments while employed full-time by a qualifying employer, and 4) Submit the PSLF form annually to certify your employment and track your progress. It's crucial to verify your employer's eligibility and your payment plan early in the process, as many applicants have been denied forgiveness due to misunderstandings about program requirements. The PSLF Help Tool on the Federal Student Aid website can help determine if your employer qualifies and guide you through the application process.
The decision to pay off student loans early versus investing depends on several factors, including your loan interest rates, potential investment returns, risk tolerance, and other financial goals. From a purely mathematical perspective, if your expected investment returns (after taxes) exceed your student loan interest rate, investing might be the better choice. For example, if your student loans have a 4% interest rate and you reasonably expect to earn 7% annually from investments, investing could yield greater long-term wealth. However, this analysis doesn't account for risk—investment returns are not guaranteed, while debt repayment offers a guaranteed "return" equal to your interest rate. Other considerations include your emergency fund status (this should be funded before aggressive loan repayment), availability of employer retirement matching (which typically offers an immediate 50-100% return), and the psychological benefit of being debt-free. A balanced approach often works best: make extra payments on high-interest loans while simultaneously investing, particularly in tax-advantaged retirement accounts.
Parent loans, such as the federal Direct PLUS Loan for parents (commonly called Parent PLUS loans), differ from student loans in several key ways. First, the parent, not the student, is legally responsible for repayment. Second, Parent PLUS loans require a credit check, unlike most student loans. Third, these loans typically have higher interest rates than Direct Loans for students. Fourth, Parent PLUS loans have fewer repayment options—they're not eligible for most income-driven repayment plans unless consolidated into a Direct Consolidation Loan, and even then, only the Income-Contingent Repayment plan is available. Repayment options include the Standard (10 years), Graduated (10 years with increasing payments), and Extended (up to 25 years) plans. Parents can request deferment while the student is enrolled at least half-time and for six months after, but interest will continue to accrue. Some parents choose to have their children informally take over payments after graduation, though the parent remains legally responsible. Private parent loans vary widely in their terms and typically offer even fewer flexible repayment options than federal Parent PLUS loans.
To determine the total cost of your student loans over time, you need to calculate both the principal amount borrowed and the total interest that will accrue over the repayment period. Our Student Loan Calculator makes this process straightforward by allowing you to input your loan details and see the total payments over the life of the loan. For a manual calculation, multiply your monthly payment by the total number of payments you'll make, then subtract the original loan amount to find the total interest cost. For example, a $30,000 loan at 5% interest on a 10-year standard repayment plan would have monthly payments of about $318. Over 10 years, you'd pay approximately $38,160 total ($318 × 120 months), meaning about $8,160 in interest. Remember that this calculation becomes more complex with variable interest rates, multiple loans with different terms, or if you make extra payments. The total cost is also affected by your repayment plan, whether interest capitalizes during periods of deferment or forbearance, and any loan forgiveness you might receive.
Jessica M.
I was feeling overwhelmed by my student loan debt until I found this calculator. It helped me understand exactly how much I was paying in interest and showed me how making extra payments could save me thousands of dollars. I'm now on track to pay off my loans 3 years earlier than expected! This Student Loan Calculator is incredibly user-friendly and gave me the clarity I needed to take control of my finances.
Michael T.
As a financial advisor, I regularly recommend this Student Loan Calculator to my clients who are struggling with education debt. The projection feature is particularly valuable for current students who want to understand what their repayment obligations will look like after graduation. The ability to compare different repayment strategies side-by-side makes it easy to demonstrate the impact of extra payments. This tool has become an essential part of my practice when helping clients develop comprehensive financial plans.
David R.
I've tried several online calculators to help manage my student loans, and this calculator is definitely one of the better ones. The interface is clean and intuitive, and I appreciate how it breaks down the total cost into principal and interest with the visual chart. The only feature I wish it had is the ability to compare multiple loans simultaneously. Otherwise, This Student Loan Calculator has been extremely helpful in planning my debt repayment strategy.
Sarah K.
I'm a recent graduate with over $50,000 in student loans, and I was feeling completely lost about how to approach repayment. This Student Loan Calculator helped me understand my options and create a realistic plan. The repayment calculator showed me that by adding just $100 extra per month, I could save over $5,000 in interest and pay off my loans years earlier. The detailed explanations alongside the calculator also helped me understand concepts like loan forgiveness and income-driven repayment. I'm so grateful for this resource!
Robert M.
As a parent helping my daughter navigate college financing, this calculator has been invaluable. The projection feature allowed us to estimate her total debt and monthly payments after graduation, which helped us make more informed decisions about how much to borrow each year. The comprehensive information about different loan types and repayment options was also extremely educational. I've recommended This Student Loan Calculator to all the parents in my network who have college-bound children.
