🎓 Student Loan Calculator

Federal Student Loans (Better for most borrowers):

• Fixed interest rates set by government
• ✓ Income-driven repayment plans available
• Loan forgiveness programs (Public Service Loan Forgiveness)
• Deferment and forbearance options
• ✓ No credit check required (for most)
• Subsidized loans - government pays interest while in school

Private Student Loans:

• ✓ Variable or fixed rates based on credit
• Limited repayment flexibility
• No federal forgiveness programs
• ✓ Requires good credit or cosigner
• ✓ May have lower rates for excellent credit

Recommendation: Always max out federal loans before considering private loans.

According to recent data, the average student loan debt by degree:

• Bachelor's degree: $28,000 - $40,000
• Master's degree: $50,000 - $70,000
• Law school: $140,000 - $160,000
• Medical school: $200,000 - $250,000
• Dental school: $300,000+

Guideline: Your total student debt should be less than your expected first-year salary. For example, if you'll earn $50,000 starting out, try to borrow less than $50,000 total.

Use our student loan calculator! For a quick estimate, here's the general formula:

• Standard 10-year plan: For every $10,000 borrowed at 5% interest, expect ~$106/month
• Example: $30,000 debt = ~$318/month for 10 years
• Example: $50,000 debt = ~$530/month for 10 years

Other repayment plans change your payment based on income:

• Income-Based Repayment (IBR): 10-15% of discretionary income
• PAYE/REPAYE: 10% of discretionary income
• Graduated Repayment: Starts lower, increases every 2 years

Paying student loans early can save thousands in interest, but consider these factors first:

Pay early if:

• ✓ You have high-interest loans (above 6%)
• ✓ You have an emergency fund saved (3-6 months expenses)
• ✓ You're already contributing to retirement (at least up to employer match)
• ✓ You have no higher-interest debt (credit cards, personal loans)

Don't rush to pay early if:

• ✗ You have low-interest federal loans (under 4%)
• ✗ You're pursuing Public Service Loan Forgiveness (PSLF)
• ✗ You don't have an emergency fund
• You have other high-interest debt

Use our "Early Payoff" feature to see exactly how much you'd save!

Refinancing means getting a new private loan to pay off your existing student loans, ideally at a lower interest rate.

Pros of refinancing:

• ✓ Potentially lower interest rate (save thousands)
• ✓ Single monthly payment instead of multiple
• ✓ Lower monthly payment or shorter term

Cons of refinancing:

• Lose federal benefits (income-driven plans, forgiveness, deferment)
• ✗ May require good credit (680+)
• ✗ Variable rates can increase later

Best candidates: High-income earners with stable jobs, good credit, and no plans to use federal forgiveness programs.

If you're struggling with payments, you have options - don't just stop paying!

For federal loans (in order of least to most severe impact):

• Income-Driven Repayment: Reduce payments to 10-15% of income
• Deferment: Postpone payments (interest may still accrue)
• Forbearance: Temporary payment reduction or pause (12 months max)
• Default rehabilitation: If already in default, make 9 on-time payments to restore good standing

Warning: Defaulting on student loans leads to wage garnishment, tax refund seizure, credit damage, and collection fees (up to 25% of balance). Contact your loan servicer immediately if you can't pay.