Student Loan Calculator
Understand your student loan costs and create a payoff strategy. See how extra payments can save you thousands.
Period before you start making payments.
Check this if the government pays your interest while in school.
Federal Student Loan Types
Subsidized Loans
- • Government pays interest while in school
- • Based on financial need
- • Undergrad only
- • 2026 rate: 6.53%
Unsubsidized Loans
- • Interest accrues from day one
- • No financial need required
- • Available for undergrad & grad
- • 2026 rate: 6.53% (undergrad) / 8.08% (grad)
Understanding Interest Capitalization
One of the biggest surprises for graduates is their loan balance being higher than what they borrowed. This happens because of interest capitalization.
⚠️ Example: The Hidden Cost
$30,000 unsubsidized loan at 7% for 4 years of school:
Interest accrued: ~$8,400
New balance at graduation: $38,400
You now pay interest on $38,400, not $30,000!
Pro tip: If you can, make interest-only payments while in school to prevent capitalization.
Federal Repayment Plan Comparison
Here's how different plans affect a $35,000 loan balance:
| Plan | Monthly Payment | Total Paid | Total Interest |
|---|---|---|---|
| Standard (10 year) ✓ | $398 | $47,760 | $12,760 |
| Graduated | $227→$683 | $51,600 | $16,600 |
| Extended (25 year) | $247 | $74,100 | $39,100 |
| SAVE (income-driven) | Varies | Varies | Forgiveness after 20-25 years |
Frequently Asked Questions
Should I pay off student loans or invest?
Compare your loan interest rate to expected investment returns. If your loans are at 6% and you expect 8% returns, investing (after meeting minimums) may make sense.Always contribute enough to get your full 401(k) match first.
How do I qualify for Public Service Loan Forgiveness (PSLF)?
Work full-time for a government or non-profit employer, make 120 qualifying payments on an income-driven plan, and have Direct Loans. After 10 years, remaining balance is forgiven tax-free.
Should I refinance my student loans?
Refinancing can lower your rate if you have good credit and stable income. However, refinancing federal loans into private loans means losing access to income-driven plans, forgiveness programs, and pandemic protections. Usually only refinance if you don't need federal benefits.