Student Loan Repayment Calculator

Federal Loan Interest Rates (2025–26)

• Undergraduate Direct Subsidized Loans: 5.50% — interest does not accrue while enrolled at least half-time.
• Undergraduate Direct Unsubsidized Loans: 5.50% — interest accrues from disbursement, including while in school.
• Graduate Direct Unsubsidized Loans: 7.05% — for graduate and professional degree programs.
• Graduate and Parent PLUS Loans: 8.05% — for parents borrowing on behalf of dependent students or for graduate students.

Repayment Plan Options

The federal student loan system offers several repayment plans, each designed for different financial circumstances:

• Standard Repayment: Fixed payments over 10 years. This plan has the shortest payoff period and minimizes total interest paid. Most borrowers default to this plan unless they choose otherwise.
• Graduated Repayment: Payments start low and increase every two years over a 10-year period. Suitable for borrowers who expect their income to grow over time.
• Extended Repayment: Stretches repayment up to 25 years for borrowers with over $30,000 in federal loans. Lowers monthly payments but significantly increases total interest paid.
• Income-Based Repayment (IBR): Caps monthly payments at 10–15% of your discretionary income. Any remaining balance is forgiven after 20–25 years of qualifying payments.
• SAVE Plan (Saving on a Valuable Education): The newest income-driven plan, replacing the REPAYE plan. Generally results in the lowest monthly payments for most borrowers and offers faster forgiveness for small balances.
• Public Service Loan Forgiveness (PSLF): After 120 qualifying payments while working full-time for a government or nonprofit employer, the remaining balance is forgiven tax-free.

How to Pay Off Loans Faster

Even small additional payments can dramatically reduce total interest paid and shorten your loan term. Here are proven strategies to accelerate repayment:

• • Pay more than the minimum: Applying even $50–$100 extra per month toward principal cuts years off your repayment.
• • Make biweekly payments: Splitting your monthly payment in half and paying every two weeks results in one extra payment per year.
• • Apply windfalls: Tax refunds, bonuses, and monetary gifts applied to principal have outsized impact early in the loan term.
• • Target high-interest loans first: If you have multiple loans, the avalanche method (paying the highest-interest loan first) minimizes total interest.
• • Refinance strategically: Private refinancing can reduce your interest rate if you have strong credit and stable income, but you will lose access to federal protections and forgiveness programs.
• • Employer repayment assistance: Many employers now offer student loan repayment as a benefit — check your HR handbook or job listings for this perk.

The True Cost of Student Loans

The true cost of a student loan is significantly higher than the principal you borrow. For example, a $30,000 loan at 5.5% interest over 10 years results in approximately $8,800 in total interest paid — making the actual cost of that loan nearly $39,000. Extending the term to 20 years reduces monthly payments by about 30%, but increases total interest paid to over $19,000. Understanding this trade-off between monthly affordability and total lifetime cost is fundamental to smart borrowing.

Managing Loans During Grace Periods and Deferment

Most federal student loans come with a six-month grace period after graduation before repayment begins. While you are not required to make payments during this period, interest on unsubsidized loans continues to accrue. Making interest-only payments during the grace period, or even small lump-sum payments toward the principal, prevents your balance from growing before your first official payment is due.