Input your loan balance, interest rate, and repayment term.
2
Explore Repayment Plans
Compare standard, graduated, and income-driven repayment options.
3
See Extra Payment Impact
Add extra monthly payments to see how much time and interest you save.
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Formula & Methodology
Standard Payment
M = P[r(1+r)^n] / [(1+r)^n - 1]
Fixed monthly payment over the standard 10-year repayment term.
Interest Accrual
Daily Interest = Balance x (Rate / 365)
Federal student loans accrue interest daily on the outstanding principal balance.
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Key Terms Explained
Subsidized LoanFederal loan where the government pays interest while you're in school and during deferment periods.
Unsubsidized LoanFederal loan where interest accrues from disbursement — even while you're still in school.
Income-Driven RepaymentPlans that cap monthly payments at 10-20% of discretionary income, with forgiveness after 20-25 years.
Loan ServicerThe company that manages your loan account, processes payments, and handles repayment plan changes.
Capitalized InterestUnpaid interest added to your principal balance, increasing the amount that accrues future interest.
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Real-World Examples
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Alex
Standard Repayment
Inputs: Balance: $35,000, Rate: 5.5%, Term: 10 years
Result: Result: Monthly payment = $380, Total interest = $10,565. Total repaid = $45,565.
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Sarah
Extra Payments Impact
Inputs: Same loan with $100 extra/month
Result: Result: Paid off in 7.3 years instead of 10. Interest savings = $3,200. Saves 2.7 years of payments.
Federal Repayment Plan Comparison ($35,000 at 5.5%)
Plan
Monthly Payment
Total Paid
Forgiveness
Standard (10yr)
$380
$45,565
None
Graduated (10yr)
$250-$550
$47,200
None
SAVE/IBR
$150-$350
Varies
After 20-25 years
Extended (25yr)
$215
$64,500
None
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Navigating Student Loan Repayment
Standard vs. Income-Driven Plans
The standard 10-year plan costs the least in total interest but has the highest monthly payment. Income-driven plans offer relief for tight budgets, but extending repayment means paying significantly more interest over time.
The Power of Extra Payments
Even an extra $50-100 per month can shave years off your repayment timeline. Specify that extra payments should go toward principal, not future payments. Target the highest-rate loan first if you have multiple loans.
Refinancing Considerations
Private refinancing can lower your rate but means losing federal protections like income-driven repayment, deferment, and potential forgiveness. Only refinance if you have stable income and don't need the federal safety net.
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Frequently Asked Questions
Which repayment plan will save me the most money?+
The Standard 10-year repayment plan typically costs the least in total interest because of its shorter term. Income-driven plans lower monthly payments but extend repayment to 20-25 years, resulting in significantly more interest paid unless you qualify for loan forgiveness.
Should I pay more than the minimum on my student loans?+
Making extra payments can save you thousands in interest and shorten your repayment timeline. Even an extra $50-100 per month makes a meaningful difference. However, if you are pursuing Public Service Loan Forgiveness, extra payments may not be beneficial since your remaining balance gets forgiven.
What is the difference between subsidized and unsubsidized student loans?+
Subsidized loans do not accrue interest while you are in school or during deferment, saving you money. Unsubsidized loans begin accruing interest immediately upon disbursement, which capitalizes (adds to principal) when repayment begins, increasing your total balance.
Can I refinance my student loans to get a lower rate?+
Private refinancing can lower your interest rate if you have strong credit and income, potentially saving thousands. However, refinancing federal loans into private loans means losing access to income-driven repayment plans, forbearance options, and loan forgiveness programs.
How does student loan interest deduction work?+
You can deduct up to $2,500 in student loan interest paid per year from your taxable income, even if you do not itemize deductions. The deduction phases out at higher income levels and is available for both federal and private student loans as long as you meet eligibility requirements.