Student Loan Calculator

Student loans are a specific type of loan designed to help students pay for post-secondary education expenses, including tuition, books, supplies, and living expenses. Understanding the components and types of student loans is crucial for making informed borrowing decisions.

Types of Student Loans

Federal Student Loans

• Direct Subsidized Loans: Available to undergraduate students with financial need. The government pays the interest while you're in school, during grace periods, and during deferment.
• Direct Unsubsidized Loans: Available to undergraduate and graduate students regardless of financial need. Interest accrues during all periods, including while in school.
• Direct PLUS Loans: Available to graduate students and parents of dependent undergraduate students. These have higher interest rates and origination fees.
• Direct Consolidation Loans: Allow you to combine multiple federal student loans into a single loan with a fixed interest rate.

Private Student Loans

• Offered by banks, credit unions, and online lenders
• Interest rates may be fixed or variable
• Often require a credit check and/or a co-signer
• Typically lack the flexible repayment options and borrower protections of federal loans

Understanding Student Loan Terms

• Principal: The original amount borrowed, before interest is added
• Interest Rate: The percentage of the principal that is charged as interest annually
• Loan Term: The period over which the loan is to be repaid (typically 10-30 years)
• Grace Period: Time after graduation (usually 6 months) before repayment begins
• Deferment: Temporary postponement of loan payments
• Forbearance: Temporary reduction or suspension of payments due to financial hardship

Repayment Plans

Standard Repayment Plans

• Standard 10-Year Plan: Fixed monthly payments over 10 years
• Extended Repayment: Lower monthly payments spread over a longer period (up to 25 years)
• Graduated Repayment: Payments start low and increase every two years

Income-Driven Repayment Plans

• Income-Based Repayment (IBR): Payments are 10-15% of discretionary income
• Pay As You Earn (PAYE): Payments are 10% of discretionary income
• Revised Pay As You Earn (REPAYE): Similar to PAYE but available to all borrowers with eligible loans
• Income-Contingent Repayment (ICR): Payments are 20% of discretionary income or what you'd pay on a 12-year plan, whichever is less

Tips for Managing Student Loans

• Make payments on time to avoid late fees and negative credit impacts
• Pay more than the minimum when possible to reduce the total interest paid
• Consider refinancing if you can qualify for a lower interest rate
• Explore loan forgiveness programs if you work in public service, education, or healthcare
• Set up automatic payments to ensure timely payments and sometimes receive interest rate reductions
• Stay informed about repayment options and contact your loan servicer if you anticipate difficulty making payments

Note: This calculator provides general guidance based on the information you input. For specific information about your loans and repayment options, contact your loan servicer or financial aid office.