Student Loan Calculator
2024-25 Federal Loan Rates
Related Calculators
Understanding Student Loans
Types of Federal Student Loans
Direct Subsidized Loans
For undergraduate students with financial need. The government pays interest while you are in school at least half-time, during the grace period, and during deferment.
Direct Unsubsidized Loans
Available to undergrad and grad students regardless of financial need. Interest accrues from disbursement and capitalizes if unpaid.
Direct PLUS Loans
For graduate students and parents of dependent undergrads. Credit check required. Higher interest rate but larger borrowing limits.
Private Student Loans
Offered by banks and lenders. Rates vary based on creditworthiness. Fewer protections and repayment options than federal loans.
Federal Repayment Plans
| Plan | Term | Payment |
|---|---|---|
| Standard | 10 years | Fixed amount |
| Graduated | 10 years | Starts low, increases every 2 years |
| Extended | 25 years | Fixed or graduated (requires $30k+ balance) |
| SAVE | 20-25 years | 10% of discretionary income |
| PAYE | 20 years | 10% of discretionary income |
| IBR | 20-25 years | 10-15% of discretionary income |
The Cost of Interest Over Time
Example: $35,000 Loan at 6.8%
Strategies to Pay Off Loans Faster
Loan Forgiveness Programs
Public Service Loan Forgiveness (PSLF)
Forgiveness after 120 qualifying payments while working full-time for a qualifying employer (government, nonprofit). Tax-free forgiveness.
Income-Driven Forgiveness
Remaining balance forgiven after 20-25 years of payments on an income-driven plan. Forgiven amount may be taxable income.
Annual Loan Limits
| Year | Dependent | Independent |
|---|---|---|
| First Year | $5,500 | $9,500 |
| Second Year | $6,500 | $10,500 |
| Third Year+ | $7,500 | $12,500 |
| Graduate | - | $20,500 |
| Aggregate Limit (Undergrad) | $31,000 | $57,500 |
Important Note
This calculator provides estimates based on standard amortization. Actual payments may vary based on your specific loan terms, servicer policies, and repayment plan. Contact your loan servicer for exact payment information. Federal loan programs and rates are subject to change.
Frequently Asked Questions
What is the difference between subsidized and unsubsidized loans?
With subsidized loans, the government pays interest while you're in school, during grace period, and deferment. With unsubsidized loans, interest accrues from disbursement and capitalizes (adds to principal) if unpaid. Subsidized loans are only for undergrads with financial need and save significant money over time.
What is the standard repayment plan for federal student loans?
The Standard Repayment Plan is 10 years with fixed monthly payments. This results in the lowest total interest cost but highest monthly payments. For $35,000 at 6.8%, you'd pay about $403/month and $13,300 in interest. Extending to 25 years lowers payments to $244 but costs $38,000 in interest.
Should I refinance my student loans?
Refinancing to a lower rate can save money, but you lose federal benefits like income-driven plans, forgiveness programs, and deferment options. Only refinance federal loans if: you don't qualify for PSLF, have stable income, good credit for lower rates, and don't need federal protections. Private loans can usually be refinanced safely.
What is Public Service Loan Forgiveness (PSLF)?
PSLF forgives remaining federal loan balance after 120 qualifying payments while working full-time for a qualifying employer (government, nonprofit). Payments must be under an income-driven plan. The forgiven amount is tax-free. Track your qualifying payments carefully - many borrowers discover they don't qualify after years of payments.