Student Loan
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4 Repayment Plans
Student Loan Calculator
Enter your loan balance, interest rate and term to get your exact monthly payment, total interest, payoff date and a full yearly amortization schedule. Compare all four repayment plans side by side, and see exactly how much time and money an extra monthly payment saves you - for both federal and private loans.
Student Loan Calculator
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Monthly Payment (Standard 10-Year)
Repayment Plan Comparison
Run the calculator first to see personalised plan comparisons.
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Yearly Amortization Schedule
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| Year | Payment | Principal | Interest | Balance | Total Interest Paid |
|---|---|---|---|---|---|
| Run the calculator first. | |||||
How Student Loans Are Calculated
Monthly Payment Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
M = Monthly payment
P = Principal (loan balance)
r = Monthly interest rate (annual rate / 12)
n = Total number of payments (years × 12)
Example: $35,000 at 6.52% for 10 years
r = 0.0652 / 12 = 0.005433
n = 10 × 12 = 120
M = 35000 × [0.005433 × (1.005433)^120]
/ [(1.005433)^120 - 1]
M ≈ $397.77/month
Federal Repayment Plans (changes from July 2026)
Standard (10 years):
Fixed equal payments over 10 years
Minimises total interest paid
Graduated (10 years):
Payments start low, increase every 2 years
Same 10-year term, but more total interest
Extended (25 years):
Lower monthly payments, much more interest
Available for balances over $30,000
Income-Based Repayment (IBR):
Older loans: 15% of discretionary income, 25 years
Newer loans: 10% of discretionary income, 20 years
Remaining balance forgiven at the end of the term
Repayment Assistance Plan (RAP), from July 1, 2026:
Payment scales with adjusted gross income
Forgiveness after 30 years of payments
New loans after July 1, 2026: RAP or Tiered Standard only
SAVE is being wound down; PAYE and ICR are being
phased out. Confirm your options at studentaid.gov.
IBR discretionary income = AGI - 150% of poverty line
(the calculator uses a simplified estimate)
Impact of Extra Payments
Extra payments go directly to principal.
This reduces the balance on which interest accrues.
Effect of extra $100/month on $35,000 @ 6.52%, 10yr:
Standard payment: $398/month
With $100 extra: $498/month
Time saved: ~31 months
Interest saved: ~$3,500
Rule of thumb: about $100 extra/month on a
$35,000 loan cuts roughly a quarter off the term.
2026-27 Federal Student Loan Rates
Direct Subsidized/Unsubsidized (undergrad): 6.52%
Direct Unsubsidized (graduate): 8.07%
Direct PLUS (parents; Grad PLUS ended for
new borrowers on July 1, 2026): 9.07%
Private loan rates: varies 4-16% (credit-based)
Variable rates can increase over time.
Rates apply to loans first disbursed July 1, 2026 to
June 30, 2027 and stay fixed for the life of the loan.
Source: U.S. Dept. of Education (Federal Student Aid).
Frequently Asked Questions
The Standard Repayment Plan spreads payments over 10 years in fixed equal monthly installments. It carries the highest monthly payment of any plan but the lowest total interest cost - making it the least expensive option overall for borrowers who can afford the payments. Most borrowers are automatically placed on Standard after their 6-month grace period ends following graduation or leaving school. If you can afford the Standard payment, it is almost always the financially optimal choice unless you qualify for PSLF.
Federal rates are set by a statutory formula tied to the 10-year Treasury auction each spring and apply to loans first disbursed between July 1 and June 30 of the following year. Rates differ by loan type (undergraduate, graduate, PLUS) and are fixed for the life of each loan. New rates are published every year, so confirm the current figures at studentaid.gov before entering a rate in the calculator. Private student loan rates vary widely, depending on the borrower's credit score and chosen lender.
Income-driven repayment plans tie monthly payments to your income. IBR, for example, caps payments at 10–15% of discretionary income (income above 150% of the federal poverty line). From July 1, 2026 a new Repayment Assistance Plan (RAP) scales payments with adjusted gross income and forgives after 30 years, SAVE is being wound down, and PAYE and ICR are being phased out. Borrowers who take new loans after July 1, 2026 can use only RAP or the tiered Standard plan, so confirm your current options at studentaid.gov. Most federal Direct Loan borrowers qualify. After 20–25 years of qualifying payments, any remaining balance is forgiven - though that forgiven amount is typically treated as taxable income (PSLF forgiveness is the exception). Private loans do not qualify. Enroll at studentaid.gov.
Refinancing makes sense only in specific situations: your interest rate is above 7% and you have strong credit (700+ score), you have a stable high income, and you have no intention of using income-driven repayment, PSLF, or other federal protections. The critical warning: refinancing federal loans into a private loan permanently and irreversibly removes access to IDR plans, PSLF, deferment, and federal forbearance. If there is any chance your income could drop or you may want these options, do not refinance federal loans.
Capitalisation is when unpaid accrued interest gets added to your principal, so future interest is then charged on a larger balance. It most commonly happens when repayment begins (especially for unsubsidised loans that accrued interest during school), after periods of forbearance or deferment, and when leaving income-driven repayment plans. To avoid capitalisation: pay interest as it accrues during school or forbearance if possible.
Extra payments go directly to reducing principal, which reduces the interest charged every subsequent month. On a $35,000 loan at 6.52% over 10 years: $50 extra per month saves roughly $2,050 in interest and cuts about 17 months. $100 extra saves around $3,500 and cuts about 31 months. $200 extra saves around $5,500 and cuts about 49 months. To make sure extra payments reduce your balance immediately: contact your servicer and request that overpayments are applied to principal, not credited forward as future payment credits.
PSLF forgives remaining federal loan balances after exactly 10 years - 120 qualifying monthly payments - of full-time employment with a qualifying employer. Qualifying employers include federal, state, local and tribal government agencies and 501(c)(3) nonprofits. Only Direct Loans on income-driven repayment plans qualify. Critically, PSLF forgiveness is completely tax-free, unlike standard IDR forgiveness. If you work in public service, the optimal strategy is often to minimise monthly payments through IBR so more is forgiven. Submit an Employment Certification Form annually at studentaid.gov - do not wait until year 10.
For federal loans, contact your servicer immediately. Options include: Income-Driven Repayment (lower payments based on income), Deferment (payments paused; no interest on subsidized loans), and Forbearance (payments paused; interest accrues on all loans). For private loans, hardship options vary - call your lender before missing any payment. Default occurs after 270 days of non-payment and has severe consequences: serious credit damage, wage garnishment, tax refund seizure, and loss of eligibility for future federal aid. Federal loans have far more options than private loans - exhaust every federal option before considering default.
Student Loan Calculator - Understanding Your Payments, Interest and Repayment Options
Most borrowers focus on the monthly payment number and stop there. But the monthly payment is only one piece of the picture. The number that really matters is total cost - what you actually pay back over the life of the loan compared to what you borrowed. On a standard 10-year federal loan at today's rates, a $35,000 balance typically costs around $12,000–$15,000 in interest on top of the principal. This calculator shows you the full picture upfront so you can make repayment decisions with clear numbers, not guesswork.
Quick example - $35,000 at 6.52% over 10 years (Standard Plan): Monthly payment: $397.77. Total interest: $12,733. Total cost: $47,733. Interest as % of loan: 36.4%. Payoff date: 10 years from first payment. Adding just $100/month extra saves approximately $3,500 in interest and pays off about 31 months early.
The Four Federal Repayment Plans - Which Is Right for You
Standard & Graduated (10 Years)
- Standard: Fixed equal payments over 10 years. Lowest total interest of any plan. Best for borrowers with stable income who can afford the full payment from day one
- Graduated: Same 10-year term but payments start lower and increase every 2 years. You pay roughly 10% more interest than Standard. Best for borrowers expecting significant income growth early in their career
- Both plans are available to all federal Direct Loan borrowers regardless of income
- Neither plan qualifies for loan forgiveness - you pay off the full balance
Extended & Income-Driven (20–25 Years)
- Extended (25 yr): Available for balances over $30,000. Significantly lower monthly payment but substantially more total interest - often 2× the Standard plan cost
- IBR and the new RAP: IBR caps payments at 10–15% of discretionary income with forgiveness after 20–25 years. The Repayment Assistance Plan (RAP), available from July 1, 2026, scales payments with income and forgives after 30 years. SAVE is being wound down and PAYE and ICR are being phased out. Best for borrowers with high debt relative to income, or those working in public service
- IBR forgiveness is taxable income in most cases (except PSLF)
- Enroll in IDR plans at studentaid.gov - not through your loan servicer directly
Federal vs Private Student Loans - Key Differences
The loan type matters enormously when choosing a repayment strategy. Federal and private loans have fundamentally different rules:
- Interest rates: Federal rates are fixed by Congress and apply equally to all borrowers (set annually, so check studentaid.gov for the current figures). Private rates vary widely based on your credit score and the lender.
- Repayment flexibility: Federal loans offer income-driven repayment, deferment, forbearance, and forgiveness programs. Private loans offer none of these as a legal right - hardship options depend entirely on the lender.
- Refinancing: You can refinance federal loans into private loans to get a lower rate, but you permanently lose all federal protections. Never refinance federal loans if you plan to use IBR, PSLF, or if your income could drop unexpectedly.
- Subsidised vs Unsubsidised: On Direct Subsidized loans, the government pays the interest while you are enrolled at least half-time and during the 6-month grace period. On Unsubsidised loans, interest accrues from the day the loan is disbursed - including while you are still in school.
How Extra Payments Work - And Why They Matter More Than You Think
Every extra dollar you pay beyond the minimum goes directly to principal - not to future interest. This creates a compounding benefit: a smaller principal means less interest accrues each month, which means an even larger portion of your regular payment goes to principal next month, and so on. The earlier in the loan term you make extra payments, the greater the multiplier effect.
- $50/month extra on a $35,000 loan at 6.52%: saves ~$2,050 in interest, cuts ~17 months off repayment
- $100/month extra: saves ~$3,500, cuts ~31 months
- $200/month extra: saves ~$5,500, cuts ~49 months
- $500/month extra: saves ~$5,800, cuts ~60 months - pays off in 5 years instead of 10
One important note: confirm with your servicer that extra payments are applied to principal and not held as a credit toward future payments. Most servicers default to crediting forward - you may need to specify "apply to principal" explicitly.
Public Service Loan Forgiveness (PSLF) - Who Qualifies
PSLF forgives the remaining federal loan balance after 10 years (120 qualifying monthly payments) of full-time employment with a qualifying employer. Unlike standard IDR forgiveness, PSLF forgiveness is completely tax-free.
- Qualifying employers: Federal, state, local and tribal government agencies; 501(c)(3) nonprofit organisations; and certain other public service organisations
- Qualifying loans: Only Direct Loans qualify. FFEL and Perkins loans must be consolidated into a Direct Consolidation Loan first
- Qualifying repayment plans: Must be on a qualifying plan, such as an income-driven plan (IBR) or the new RAP, or the 10-year Standard plan. Check studentaid.gov for the plans that currently count
- Strategy implication: If you qualify for PSLF, minimising your monthly payments via IBR is actually the optimal strategy - lower payments mean more is forgiven tax-free after 10 years
- Submit an Employment Certification Form annually at studentaid.gov, not just at the 10-year mark
What Happens to Interest While You Are Still in School
This is one of the most misunderstood aspects of student loans. On Direct Unsubsidized loans and PLUS loans, interest starts accruing from the day the loan is disbursed - even while you are still in school and not making payments. By the time a typical 4-year student graduates, the loan balance may be significantly higher than the original amount borrowed due to capitalised interest.
- $10,000 unsubsidized loan at 6.52% - after 4 years in school: roughly $2,600 in accrued interest (before any capitalisation)
- If not paid during school, this interest capitalises at repayment start, increasing the principal to ~$12,800
- You then pay interest on $12,800, not $10,000 - a significant difference over 10 years
- Best practice: Pay the monthly interest on unsubsidized loans while still in school, even if you cannot pay down the principal. This prevents capitalisation and saves considerably over the life of the loan
How this calculator works, and where the numbers come from
The Student Loan Calculator applies the standard formula for this calculation to the values you enter and updates the result as you type. The calculation itself happens in your browser, and the page explains the method so you can check any result by hand.
Please note: Results are provided for general information and are calculated from the values you enter.
Sources and further reading
- U.S. Department of Education - Federal Student Aid
- Consumer Financial Protection Bureau - Owning a Home
Learn more
Read our guide: How EMI Is Calculated, With a Full Worked Loan Example