On the standard 10-year federal repayment plan, a $30,000 loan at 6.5% costs $341/month and $10,938 in total interest. Switching to an income-driven plan (20-25 year term) lowers monthly payments but increases total interest significantly — and remaining balance is forgiven only after 20–25 years of qualifying payments. An extra $100/month on the standard plan cuts nearly 2 years off repayment and saves approximately $2,100 in interest. Private loans compound daily and have no forgiveness programs, making them the highest priority for accelerated payoff.
How to Use the Student Loan Calculator
Enter your loan balance, annual interest rate, and repayment term in years. Optionally add an extra monthly payment to see how it accelerates payoff and reduces total interest. The calculator shows your monthly payment, total interest paid, payoff date, and interest savings from any extra payment. Add multiple loans with different rates to plan a combined payoff strategy — putting extra payments toward the highest-rate loan first (avalanche method) minimizes total interest.
Frequently Asked Questions
The standard federal student loan repayment plan is 10 years (120 monthly payments). All federal Direct and PLUS loans qualify. Income-driven plans (IBR, PAYE, SAVE) extend to 20–25 years with payments capped at 5–20% of discretionary income. Remaining balances are forgiven at the end of the IDR term, though forgiven amounts may be taxable.
Daily Interest = Loan Balance × Annual Interest Rate / 365. On a $25,000 loan at 6.5%: $25,000 × 0.065 / 365 = $4.45/day in interest. Over a 6-month grace period after graduation, interest on unsubsidized loans accrues to $801 before the first payment is even due.
Subsidized loans: the government pays interest while you are enrolled at least half-time and during 6-month grace periods. Unsubsidized loans: interest accrues immediately from disbursement. Unpaid interest on unsubsidized loans capitalizes (adds to principal) when repayment begins, increasing the total amount owed.
If your employer offers a 401(k) match, contribute enough to get the full match first — it is a 50–100% immediate guaranteed return. After that: if your student loan rate is above 7%, prioritize paying it off. Below 5%, investing may produce better long-term returns. Between 5–7%, consider splitting extra money between both.
PSLF cancels remaining federal Direct Loan balances after 120 qualifying monthly payments while working full-time for a qualifying public service employer (government or 501(c)(3) nonprofit). Payments must be made under an income-driven repayment plan. Forgiven amounts under PSLF are not taxable as income.
