What's the difference between federal and private student loans?

Federal loans offer fixed rates, income-driven repayment, and forgiveness programs. Private loans may have variable rates and fewer protections but sometimes lower rates for excellent credit.

Should I pay off student loans or invest?

Compare your loan interest rate to expected investment returns. High-rate loans (6%+) may warrant aggressive payoff. For lower rates, consider balanced approach of minimum payments plus investing.

What is income-driven repayment (IDR)?

IDR plans cap federal student loan payments at a percentage of discretionary income (typically 10-20%). After 20-25 years of payments, remaining balance may be forgiven (with tax implications).

How does student loan refinancing work?

Refinancing replaces existing loans with a new private loan at potentially lower rates. This sacrifices federal protections like IDR and forgiveness. Best for high-income borrowers with stable employment.

What student loan repayment strategy is best?

Avalanche (highest rate first) saves most interest. Snowball (smallest balance first) provides quick wins. Standard 10-year repayment balances monthly cost and total interest paid.

How does interest accrue during school and grace period?

Subsidized federal loans don't accrue interest while in school. Unsubsidized and private loans do, and this interest capitalizes (adds to principal) when repayment begins, increasing total cost.

What happens if I can't make student loan payments?

Federal loans offer deferment, forbearance, and IDR options. Contact your servicer before missing payments. Private loan options vary by lender but may include temporary reduced payments.

Is Public Service Loan Forgiveness (PSLF) worth pursuing?

PSLF forgives remaining federal loan balance after 120 qualifying payments while working for qualifying employers. It's valuable for those committed to public service careers with large balances.

Student Loan Calculator

Calculate student loan payments and repayment options

Instant results•No signup•Estimates only

Loan Balance

Interest Rate

Repayment Term

Extra Monthly Payment

Monthly Payment

$380

Payoff Time

10 yrs 1 mo

Total Interest

$10,581

Visualization

Loan Balance Over Time

Remaining Balance
Principal Paid

Original Loan

$200,000

Total Interest

$914,930

Total Paid

$136,743

Results are estimates and may vary based on lender terms and fees.

Results are estimates for informational purposes only and do not constitute financial advice. Actual results may vary based on lender terms, fees, and other factors.

How calculations work Full disclaimer

Student Loan Calculator Formula

M = P \frac{r ( 1 + r ) ^{n}}{( 1 + r ) ^{n} - 1}

This standard amortization formula calculates monthly student loan payments. P is the loan principal, r is the monthly interest rate, and n is the total number of payments. The result is a fixed payment covering both principal and interest over the loan term.

How the Student Loan Calculator Works

1Enter your total student loan balance
2Input the interest rate (federal or private loan rate)
3Select the repayment term (standard is 10 years)
4View your monthly payment and total interest cost
5Compare standard, extended, and income-driven scenarios

Student Loan Calculator Key Terms

Federal Student Loans: Government-issued student loans with fixed rates, flexible repayment options, and potential forgiveness programs.
Private Student Loans: Loans from banks or other private lenders, often with variable rates and fewer protections than federal loans.
Income-Driven Repayment: Federal loan plans that cap payments at a percentage of discretionary income and forgive balances after 20-25 years.
Loan Forgiveness: Programs like PSLF that cancel remaining federal loan balances after meeting specific requirements.

Student Loan Calculator Tips

•Make payments during the grace period to reduce interest capitalization
•Pay more than the minimum when possible—target the highest rate loans first
•Federal loans offer protections and forgiveness options private loans don't
•Refinancing can lower rates but forfeits federal loan benefits
•Explore employer student loan repayment benefits as part of compensation

When to Use This Student Loan Calculator

✓Planning your repayment strategy after graduation
✓Comparing standard vs. extended repayment terms
✓Calculating the impact of extra payments
✓Evaluating refinancing options
✓Understanding total cost of your education financing

Student Loan Calculator Examples

Standard 10-Year Plan

Balance:$35,000Rate:5.5%Term:10 years

Result:$380/month

Standard repayment of $35,000 at 5.5% over 10 years costs $380 monthly with $10,600 total interest.

Extended Repayment

Balance:$50,000Rate:6%Term:25 years

Result:$322/month

Extending to 25 years lowers payments to $322 but increases total interest to $46,600.

Aggressive Payoff

Balance:$28,000Rate:4.5%Term:5 years

Result:$521/month

Paying off in 5 years requires $521 monthly but saves $7,200 in interest vs 10-year plan.

Understanding Student Loan in Depth

Student loan debt affects millions of Americans, with the average borrower owing over $30,000 at graduation. Understanding your repayment options and creating a strategic plan can save thousands and accelerate debt freedom.

Federal vs. Private Loan Strategy

Federal loans offer income-driven repayment, forgiveness programs, and deferment options that private loans lack. Generally, keep federal loans federal unless refinancing saves substantial interest AND you don't need federal protections. Mixing forgiveness-track federal loans with aggressive private loan payoff is often optimal.

The Interest Capitalization Trap

Interest that accrues during school, grace periods, or deferment can capitalize—be added to principal—dramatically increasing your balance. If possible, make interest-only payments during these periods to prevent balance growth.

Choosing Your Repayment Plan

Standard 10-year repayment costs the least in total interest but has the highest payments. Extended plans (20-25 years) lower payments but nearly double interest costs. Income-driven plans offer relief but often result in negative amortization and taxable forgiveness.

The Refinancing Decision

Refinancing federal loans into private loans can substantially reduce interest rates for borrowers with good credit and stable income. However, you permanently lose access to income-driven plans, forgiveness programs, and federal protections. This trade-off isn't worth it for everyone.

Student Loan Calculator FAQs

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Marcus Chen

Financial Analysis Specialist

Marcus has over 12 years of experience in quantitative finance and personal financial planning. He specializes in loan analysis, investment modeling, and consumer debt strategies. His methodologies incorporate industry-standard financial mathematics used by major lending institutions.

Content reviewed: January 2026Next review scheduled: 2027

Editorial Standards: All calculations use industry-standard financial formulas. Content is reviewed for mathematical accuracy and updated to reflect current market conditions. This tool provides estimates for informational purposes and does not constitute financial advice.