Student Loan Calculator
Estimate your student loan payments before you borrow or plan your repayment strategy. See how interest rates and loan terms affect your monthly budget and total cost.
How Student Loan Interest Works
Student loans accrue interest daily based on your outstanding principal. On a $30,000 loan at 5.5%, about $4.52 in interest accrues each day. Your monthly payment covers that month's interest plus some principal.
Unsubsidized federal loans and all private loans capitalize interest—meaning unpaid interest gets added to your principal. This happens at the end of grace periods, deferments, or forbearances. Once capitalized, you pay interest on interest, which snowballs your total cost.
A $30,000 loan at 5.5% over 10 years costs $326.29 monthly and $9,155 in total interest. Stretch it to 20 years and the payment drops to $206.02, but total interest jumps to $19,445. You pay more than twice as much interest just for cutting your monthly payment by $120.
Federal vs. Private Student Loans
Federal student loans offer fixed interest rates set by Congress, income-driven repayment plans, deferment options, and potential forgiveness programs. They don't require credit checks for undergraduates, making them accessible to most students.
Private student loans come from banks and credit unions. Rates are based on creditworthiness and can be fixed or variable. They typically lack federal protections like income-driven repayment or forgiveness. Only consider private loans after exhausting federal options.
Subsidized federal loans don't accrue interest while you're in school or during the 6-month grace period. Unsubsidized loans and private loans accrue from day one. That difference can add thousands to your debt before you make your first payment.
Strategies to Minimize Student Loan Costs
Pay interest while still in school if possible. Making even $50 monthly payments during college prevents thousands in capitalized interest. On a $30,000 loan accruing 5.5% over four years, you'd save about $7,000 in total interest.
Choose the shortest term you can afford. If you can swing $500 monthly instead of $250, you'll cut years off your repayment and save tens of thousands in interest. Run the numbers for different terms to see the trade-off.
Refinancing can lower your rate if you have strong credit and steady income. But beware: refinancing federal loans into private loans forfeits federal protections like income-driven repayment and potential forgiveness. Only refinance federal loans if you're certain you won't need those safety nets.
Frequently Asked Questions
What is the standard student loan repayment period?
Federal student loans default to a 10-year (120-month) repayment term. Private loans vary, typically ranging from 5 to 20 years depending on the lender.
What happens during the grace period?
Most federal student loans offer a 6-month grace period after graduation before payments start. Subsidized loans don't accrue interest during this time, but unsubsidized loans do.
Should I use a longer or shorter repayment term?
Shorter terms mean higher monthly payments but far less total interest. Longer terms offer lower payments but can cost tens of thousands more over the loan's life.
Can I change my repayment plan later?
Yes. Federal loans offer multiple repayment plans including income-driven options that cap payments at 10-20% of discretionary income. You can switch plans anytime.
Should I make extra payments if I can?
Extra payments reduce your principal and total interest, saving thousands. Federal loans have no prepayment penalty, so any extra money goes directly toward reducing your balance.