Student Loan Calculator
Plan your education financing, estimate monthly payments, and create a personalized student loan repayment strategy.
Understanding Student Loans
Student loans are borrowed money that must be repaid with interest. They help students pay for higher education expenses such as tuition, books, and living expenses.
Types of Student Loans:
- Federal Direct Subsidized: Interest is paid by the government while in school
- Federal Direct Unsubsidized: Interest accrues while in school
- Federal PLUS Loans: For parents and graduate students
- Private Student Loans: Offered by banks and credit unions
Repayment Plans
Standard Repayment Plan
Fixed monthly payments over 10 years. Results in the least amount of interest paid.
Graduated Repayment Plan
Payments start low and increase every two years, typically over 10 years.
Income-Based Repayment
Payments are based on your income and family size, typically 10-15% of discretionary income.
Extended Repayment Plan
Extends the loan term up to 25 years with lower monthly payments but more interest over time.
Strategies to Pay Off Student Loans Faster
Make biweekly payments instead of monthly
Pay more than the minimum payment when possible
Apply any windfalls (tax refunds, bonuses) to your loans
Refinance if you can get a lower interest rate
Check if you qualify for loan forgiveness programs
Frequently Asked Questions
What's the difference between federal and private student loans?
Federal student loans are funded by the government and typically offer lower interest rates, income-driven repayment plans, and possible loan forgiveness. Private student loans come from banks or credit unions, often have higher interest rates, and don't usually offer the flexible repayment options of federal loans.
How can I qualify for student loan forgiveness?
Several federal forgiveness programs exist, including Public Service Loan Forgiveness (PSLF) for those working in public service for 10 years, Teacher Loan Forgiveness after 5 years of teaching, and loan forgiveness through income-driven repayment plans after 20-25 years of payments. Each program has specific requirements and application processes.
Should I refinance my student loans?
Refinancing can be beneficial if you can secure a lower interest rate, which could save money over the life of the loan. However, refinancing federal loans with a private lender means losing federal benefits like income-driven repayment plans and forgiveness options. Consider your current and future financial situation carefully before refinancing.
How does interest capitalize on student loans?
Interest capitalization occurs when unpaid interest is added to the principal balance of your loan, causing you to pay interest on interest. This typically happens after periods of deferment or forbearance, or when you switch repayment plans. Capitalization can significantly increase the total cost of your loan over time.
Can student loans be discharged in bankruptcy?
While not impossible, discharging student loans in bankruptcy is very difficult. You must prove "undue hardship," which typically means showing that you cannot maintain a minimal standard of living while repaying the loans, that this situation will persist for a significant portion of the repayment period, and that you've made good-faith efforts to repay the loans.
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