Student Loan Calculator

Student Loans in the U.S.: Federal First

More than 90% of U.S. student debt is federal, and for good reason: federal loans carry some of the lowest fixed rates available anywhere, need no cosigner and no credit check beyond basic eligibility, and come with protections no private lender matches. Before borrowing at all, exhaust the money that never needs repaying — grants, scholarships, work-study — and pay what you can from income while studying. Every dollar not borrowed is a dollar that never accrues a decade of interest.

The Federal Family

Direct Subsidized Loans are need-based undergraduate loans on which the government pays the interest while you're in school at least half-time, through the grace period, and during deferment — the cheapest borrowing most students will ever see. Direct Unsubsidized Loans are open regardless of need, but interest accrues from the day of disbursement, which is exactly the capitalization the projection calculator above models. Direct PLUS Loans serve graduate students and parents of undergraduates: higher rates, a credit check, and an origination fee of roughly 4%, with borrowing up to the full cost of attendance minus other aid. Direct Consolidation Loans merge several federal loans into one payment at the weighted-average rate — simpler, and a gateway to income-driven plans, at the cost of any benefits attached to the original loans.

State and Private Loans

State agencies and nonprofits run their own programs, all different, sometimes with forgiveness for graduates who stay and work in needed professions like nursing or teaching — and with filing deadlines often earlier than the federal one. Private loans from banks go through full underwriting, price off credit (a parent cosigner usually means a much better rate), accrue interest from day one, and are rarely forgivable. They fill the gap when federal limits run out, and their interest may be tax-deductible — but they should be the last resort, not the first form filled in.

Repayment Plans, Briefly

Most borrowers land on the Standard plan: fixed payments, done in 10 years, least interest. Graduated plans start low and step up every two years. Extended plans stretch Direct Loans of $30,000+ to 25 years. The income-driven family — IBR, PAYE, REPAYE/SAVE-style and ICR plans — caps payments at 10–20% of discretionary income and forgives whatever remains after 20–25 years, sooner (and tax-free) for public-service workers after 120 qualifying payments. All federal and private student loans allow penalty-free prepayment, which is why the extra-payments test above is worth running before choosing a longer plan: a modest extra often beats a formal restructure.

Frequently Asked Questions

Why will I owe more than I borrowed?

Unpaid interest capitalizes. At the projection defaults, $40,000 borrowed becomes $44,263.99 by graduation and $45,790.44 by the first payment — and the 10-year repayment is calculated on that larger number.

Is the extra-payments math the same for private loans?

Yes — amortization is amortization. The difference is contractual: confirm your servicer applies extras to principal and allocates them to your highest-rate loan first.

What if I can't afford the standard payment?

For federal loans, an income-driven plan caps the payment to your earnings and forgives the tail end of the balance; run the numbers both ways, because the lower payment usually means more total interest unless forgiveness arrives.