Calculate student loan payments, compare repayment options, and estimate future costs. Plan your education financing with confidence.
Student loans are a crucial part of financing higher education for millions of students. Understanding how these loans work, their repayment options, and long-term implications can help you make informed decisions about your education financing strategy.
This calculator provides three essential tools: basic loan calculations, repayment strategy comparisons, and future cost projections for students still in school. Each serves a different purpose in your financial planning journey.
Available to undergraduate students with demonstrated financial need
Available to all students regardless of financial need
From banks and credit unions, often requiring cosigners
| Loan Type | Interest Rate | Loan Fees | Annual Limits |
|---|---|---|---|
| Direct Subsidized (Undergrad) | 5.50% | 1.057% | $3,500-$5,500 |
| Direct Unsubsidized (Undergrad) | 5.50% | 1.057% | $5,500-$12,500 |
| Direct Unsubsidized (Graduate) | 7.05% | 1.057% | $20,500 |
| Direct PLUS (Parents/Grad) | 8.05% | 4.228% | Cost of attendance |
| Repayment Plan | Payment Amount | Repayment Period | Best For |
|---|---|---|---|
| Standard | Fixed payments | 10 years | Lowest total interest cost |
| Extended | Fixed or graduated | Up to 25 years | Lower monthly payments |
| Income-Driven (IDR) | Based on income | 20-25 years | Financial hardship |
| Graduated | Start low, increase | 10 years | Expecting income growth |
| Program | Requirements | Forgiveness Timeline | Eligible Loans |
|---|---|---|---|
| Public Service Loan Forgiveness | Public sector employment | 10 years (120 payments) | Federal Direct loans only |
| Teacher Loan Forgiveness | 5 years low-income schools | After 5 years | Up to $17,500 forgiveness |
| Income-Driven Forgiveness | IDR plan enrollment | 20-25 years | Remaining balance forgiven |
Maximize Free Money First: Apply for grants, scholarships, and work-study programs before taking loans.
Federal Before Private: Federal loans offer better protections, flexible repayment, and forgiveness options.
Borrow Only What You Need: Just because you're approved for an amount doesn't mean you should take it all.
Consider Total Career Debt: Your total student loan debt should not exceed your expected first-year salary.
Significantly reduces total loan cost for unsubsidized loans
Even small extra payments can save thousands over loan life
Loss of federal protections and forgiveness options
Student Loan Interest Deduction: Deduct up to $2,500 in student loan interest annually.
American Opportunity Tax Credit: Up to $2,500 credit for qualified education expenses.
Lifetime Learning Credit: Up to $2,000 credit for undergraduate, graduate, and professional degree courses.
Not reading loan terms: Understanding interest rates, fees, and repayment options is crucial.
Ignoring grace period opportunities: Use the 6-month grace period to prepare for repayment.
Not exploring forgiveness programs: Many borrowers miss out on available forgiveness options.
Refinancing federal loans unnecessarily: Losing federal protections for minimal interest savings.
Making minimum payments only: Small extra payments can dramatically reduce total costs.