Student Loan Calculator

You apply through the FAFSA for federal loans, or directly with a lender for private ones. The money goes to your school first, and any remainder comes to you for other education costs. Repayment usually starts after you leave school or drop below half-time, often after a grace period of about six months. A servicer handles your bills and your questions.

Interest on federal loans is simple daily interest: balance x rate / 365 each day. At 5% on $30,000, that's about $4.11 a day, or about $125 a month. Unpaid interest can sometimes capitalize, meaning that it's added to your principal, and from then on you pay interest on it too. Paying interest during school or a grace period avoids that.

For federal loans, Congress sets the rates each year, so everyone in a given loan type and year pays the same. There's no shopping around. For private loans and refinancing, a good rate is one lower than your federal alternative, without giving up benefits you might need. Compare APRs with fees. See current federal rates at studentaid.gov.

A common rule of thumb is to keep total debt below your expected first-year salary, so that payments stay manageable on a 10-year plan. If you expect to earn $50,000 and you've borrowed $50,000 at 6%, you'd pay about $555 a month for 10 years. Try different balances above. Fields with lower starting pay may call for borrowing less.

Federal loans have yearly and lifetime limits that depend on your year in school, dependency status and program. These limits changed for many new borrowers in 2026, especially for graduate students and parents. Your school's financial aid office and studentaid.gov have the current limits. Private lenders may allow up to your school's cost of attendance, minus other aid.

The federal Standard Plan is 10 years, and other plans can run longer. Many people take more than a decade, particularly with larger balances or graduate debt. Extra payments shorten that. On $30,000 at 5%, paying over 5 years instead of 10 saves about $4,215 in interest, though the payment rises to $566 a month.

You may deduct up to $2,500 of student loan interest a year, whether or not you itemize, if your income is under the limit. The deduction phases out at higher incomes, and it isn't available if you're married filing separately. It applies to qualifying federal and private loans. Your servicer sends Form 1098-E if you paid $600 or more. See the IRS page.

Federal programs may cancel remaining balances after certain conditions are met. Public Service Loan Forgiveness requires 120 qualifying payments while working full time for a qualifying employer. Income-driven plans may forgive what's left after a long repayment period. Rules have changed repeatedly, so confirm details at studentaid.gov. Don't pay a company for help you can get for free.

Both pause or reduce your payments for a time. In deferment, the government may pay the interest on subsidized loans. In forbearance, interest generally keeps adding up on all types, which can raise your balance. They help in a short-term hardship, but rules have changed, so ask your servicer what's available. An income-driven plan may be better than a long pause.

Refinancing means taking out a new private loan to pay off your old ones, ideally at a lower rate. Federal borrowers lose access to federal benefits if they refinance. Consolidation combines federal loans into one Direct Consolidation Loan with a weighted-average rate. It simplifies your bills and can open up some plans, but it won't lower your rate.

Late payments can hurt your credit. A federal loan generally defaults after about 270 days of missed payments. After that, the government can garnish wages and take tax refunds, and you may lose access to further aid and to repayment plans. Private lenders may sue or send the debt to collections sooner. Contact your servicer before you miss a payment, as options exist.

On unsubsidized and private loans, yes. Interest starts on the day the money is paid out, and any you don't pay is usually added to the balance when repayment begins. On $30,000 at 6.39%, 4 years of school and a 6-month grace period add $8,627. Direct Subsidized Loans don't charge you interest during school or the grace period. Switch the loan type above to compare.