🎓 Student Loan Calculator

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 6.54% for 10 years r = 0.0654 / 12 = 0.00545 n = 10 × 12 = 120 M = 35000 × [0.00545 × (1.00545)^120] / [(1.00545)^120 - 1] M ≈ $395.58/month

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): SAVE Plan: 5-10% of discretionary income IBR: 10-15% of discretionary income PAYE: 10% of discretionary income After 20-25 years: remaining balance forgiven Discretionary income = AGI - 225% of poverty line

Extra payments go directly to principal. This reduces the balance on which interest accrues. Effect of extra $100/month on $35,000 @ 6.54%, 10yr: Standard payment: $395/month With $100 extra: $495/month Time saved: ~22 months Interest saved: ~$1,850 Rule of thumb: $100 extra/month saves ~10-15% of remaining term on a typical student loan.

Direct Subsidized/Unsubsidized (undergrad): 6.53% Direct Unsubsidized (graduate): 8.08% Direct PLUS (graduate / parents): 9.08% Private loan rates: varies 4-16% (credit-based) Variable rates can increase over time. Note: Federal rates are set annually for new loans originated from July 1 to June 30.