Student Loan Calculator
Calculate payments, compare loan types, and estimate forgiveness for US federal & private student loans
Loan Type
Loan Details
$35,000
Federal fixed rate for 2025–2026: 6.39%
💡 Smart Insights
Subsidized Advantage
Your subsidized loan saves you $1,118 during the 6-month grace period because the government pays your interest.
💡 This benefit also applies during approved deferment periods.
Federal Forgiveness Eligible
This federal loan qualifies for Public Service Loan Forgiveness (PSLF) if you work in government or a qualifying non-profit. Remaining balance forgiven tax-free after 120 qualifying payments.
💡 Check the Forgiveness Estimator tab to see your potential savings.
Loan Breakdown
Principal
$35,000
73.8%
Total Interest
$12,455
26.2%
Total Repayment
$47,455
Remaining Balance Over Time
Monthly Payment
$395.46
6.39% APR · 120 months
Total Repayment
$47,455
$35,000 principal + $12,455 interest
Total Interest
$12,455
73.8% of payments go to principal
Payoff Date
January 2037
10 years, 0 months
Grace Period Cost
$0
Subsidized: government pays interest during grace
How to Use This Student Loan Calculator
Estimate your monthly student loan payment, total interest, and explore repayment strategies in under a minute. This calculator is built specifically for US students and graduates with federal or private student loans.
Select your loan type
Choose from Federal Subsidized, Unsubsidized, Graduate, Parent PLUS, Grad PLUS, or Private. The calculator auto-fills the current 2025–2026 federal interest rate for your selection.
Enter your loan amount
Input the total amount you have borrowed or plan to borrow. Our tooltips show federal annual and aggregate borrowing limits to help you stay within bounds.
Choose a repayment term
Use the preset buttons (10yr Standard through 30yr Extended) or enter a custom term. See how different terms affect your monthly payment and total interest instantly.
Configure grace period and extra payments
Expand Advanced Options to adjust the grace period (default 6 months for federal loans) and add optional extra monthly payments. See exactly how much interest you save by paying more.
Explore results, charts, and insights
Review your monthly payment, total interest, amortization schedule, and smart insights. Use the Cost Comparison and Forgiveness Estimator tabs for deeper analysis.
Federal Student Loan Types Explained
The U.S. Department of Education offers four types of Direct Loans through the William D. Ford Federal Direct Loan Program. Understanding the differences is essential for minimizing your borrowing costs.
Direct Subsidized Loans
Undergraduate OnlyAvailable to undergraduates with demonstrated financial need. The key advantage: the federal government pays the interest while you're enrolled at least half-time, during the 6-month grace period, and during authorized deferment. This prevents interest from capitalizing and keeps your balance from growing.
6.39% (2025–26)
Direct Unsubsidized Loans
All StudentsAvailable to all undergraduate, graduate, and professional students regardless of financial need. Interest begins accruing from the moment the loan is disbursed. If you don't pay the interest while in school, it capitalizes — meaning you'll pay interest on interest for the life of the loan.
6.39% (UG) · 7.94% (Grad)
Parent PLUS Loans
Parents of Dependent UGAvailable to biological or adoptive parents of dependent undergraduate students. A credit check is required, but applicants with 'adverse credit history' can obtain an endorser or document extenuating circumstances. There is no aggregate borrowing limit — parents can borrow up to the school's cost of attendance minus other aid.
8.94% (2025–26)
Graduate PLUS Loans
Graduate & ProfessionalAvailable to graduate and professional students enrolled at least half-time. Credit check required. Covers up to the cost of attendance minus other financial aid. Note: starting July 1, 2026, the Graduate PLUS program will be eliminated for new borrowers, replaced by new annual and aggregate caps for graduate Direct Unsubsidized loans.
8.94% (2025–26)
The SAVE Plan Is Dead — Here's What to Do Now
If you were on the SAVE plan, you probably got a letter — or you're about to. The SAVE plan was terminated by court ruling in March 2026. Millions of borrowers are in limbo, and here's the thing nobody is telling you clearly: you are on a ticking clock.
The 90-Day Clock
Loan servicers are notifying borrowers in waves. Once you receive your notice, you typically have exactly 90 days to pick a new repayment plan. If you do nothing, you will be auto-placed into the Standard Repayment plan, which could double or triple your monthly payment overnight.
Your Actual Options as of July 2026
- RAP (Repayment Assistance Plan): The new income-driven plan. Tiered payments from 1–10% of your AGI, $10/month minimum, with forgiveness after 30 years.
- Standard Repayment: Fixed payments over 10 years. Fast, but usually the highest monthly payment.
- Extended Repayment: Up to 25 years (if you have over $30K in debt).
- IBR (Income-Based Repayment): Still available for pre-July-2026 borrowers, but closing to new enrollments soon.
⚠️ The RAP Payment Count Trap
Switching to RAP may reset your general IDR forgiveness clock. Payments made under legacy IDR plans (like the old PAYE or ICR) might not count toward RAP's 30-year forgiveness timeline. (Note: This does not affect PSLF counts, which operate under different rules).
Real World Example
Maria has $62,000 in loans at 6.39% and was paying $280/month on SAVE. If she misses her 90-day window, she gets auto-enrolled in Standard, and her payment jumps to $704/month. If she switches to RAP with her $55K AGI, she'd pay roughly $350/month.
Sources: StudentAid.gov (Repayment Plans), ED.gov (Federal Register), PHEAA.org Transition Details.
The One Big Beautiful Bill (OBBBA) Changed Everything
Congress passed a 1,100-page bill on a holiday weekend in 2025. The One Big Beautiful Bill Act (OBBBA) took effect on July 1, 2026, and it represents the biggest overhaul of federal student aid since the 2010 switch to Direct Loans. Here is what it actually means for your loans, without the legal jargon.
What the OBBBA Actually Did
- Killed Grad PLUS: The Graduate PLUS loan program was eliminated for new borrowers.
- Capped Parent PLUS: Parent PLUS loans are now strictly capped at $20,000/year per student (and $65,000 lifetime).
- New Default Plan: Replaced all legacy IDR plans with the new RAP (Repayment Assistance Plan) for new borrowers.
- Prorated Eligibility: Introduced the Schedule of Reductions (SOR), which prorates loan eligibility based on the actual credit hours a student is enrolled in.
Who Wins and Who Loses?
The Losers: Graduate and professional students (law, medical, MBA). If you are at a private law school charging $65K/year in tuition, you can no longer use unlimited Grad PLUS loans to bridge the gap.
The Winners: Part-time undergraduates. The SOR provisions actually grant part-time students proportional federal aid instead of forcing an all-or-nothing requirement.
The "Legacy Borrower" Window
If you had federal student loans disbursed before July 1, 2026, you may still access older plans like IBR and ICR temporarily. But the clock is ticking: the OBBBA set a phase-out timeline that fully eliminates these legacy programs by July 1, 2028.
Sources: StudentAid.gov OBBBA Updates, Harvard Financial Aid Analysis, American Bar Association.
Federal Student Loan Interest Rates (2020–2026)
Federal student loan rates are set annually by Congress based on the 10-year Treasury note yield. Once fixed, your rate stays the same for the life of the loan. Here are the rates for recent academic years.
| Academic Year | Undergrad | Graduate | PLUS |
|---|---|---|---|
| 2025–2026 | 6.39% | 7.94% | 8.94% |
| 2024–2025 | 6.53% | 8.08% | 9.08% |
| 2023–2024 | 5.5% | 7.05% | 8.05% |
| 2022–2023 | 4.99% | 6.54% | 7.54% |
| 2021–2022 | 3.73% | 5.28% | 6.28% |
| 2020–2021 | 2.75% | 4.3% | 5.3% |
Source: U.S. Department of Education / StudentAid.gov. Rates are for loans first disbursed during each academic year (July 1 – June 30).
Annual Borrowing Limits
Federal Direct Loans have annual limits based on your year in school and dependency status. These limits include both subsidized and unsubsidized amounts combined.
| Year | Dependent | Independent | ||
|---|---|---|---|---|
| Total | Max Subsidized | Total | Max Subsidized | |
| Freshman (1st year) | $5,500 | $3,500 | $9,500 | $3,500 |
| Sophomore (2nd year) | $6,500 | $4,500 | $10,500 | $4,500 |
| Junior & Beyond | $7,500 | $5,500 | $12,500 | $5,500 |
| Graduate / Professional | $20,500 | $0 | $20,500 | $0 |
Aggregate (Lifetime) Limits
| Category | Total Limit | Max Subsidized |
|---|---|---|
| Dependent Undergraduate | $31,000 | $23,000 |
| Independent Undergraduate | $57,500 | $23,000 |
| Graduate / Professional | $138,500 | $65,500 |
Source: StudentAid.gov. PLUS loans have no aggregate limit. Graduate PLUS program will be eliminated for new borrowers starting July 1, 2026.
Federal Student Loan Repayment Plans (2026)
The landscape of student loan repayment plans is changing significantly in 2026. The SAVE plan was terminated in March 2026, PAYE and ICR are being phased out, and a new Repayment Assistance Plan (RAP) launches July 1, 2026.
Standard Repayment
Active10yr termFixed monthly payments over 10 years. The default plan for all federal loans.
Eligibility: All federal student loan borrowers
Extended Repayment
Active25yr termFixed or graduated payments over up to 25 years. Lower monthly payment but more total interest.
Eligibility: Borrowers with $30,000+ in outstanding Direct Loans
Graduated Repayment
Active10yr termPayments start low and increase every two years. Total cost is higher than Standard.
Eligibility: All federal student loan borrowers
Income-Based Repayment (IBR)
Phase-Out20yr termPayments capped at 10–15% of discretionary income. Forgiveness after 20 or 25 years.
Eligibility: Borrowers with partial financial hardship
⚠️ Available for existing borrowers. Closing to new borrowers who take loans on/after July 1, 2026.
Repayment Assistance Plan (RAP)
Coming July 202630yr termNew plan launching July 2026. Tiered payments (1%–10% of AGI) with a $10/month minimum. Forgiveness after 30 years.
Eligibility: New borrowers and those switching from legacy IDR plans
⚠️ Launches July 1, 2026. Will become the primary IDR option.
Pay As You Earn (PAYE)
Phase-Out20yr termPayments capped at 10% of discretionary income. Forgiveness after 20 years.
Eligibility: New borrowers as of Oct 1, 2007 with loans disbursed on/after Oct 1, 2011
⚠️ Closing to new enrollments July 1, 2026. Eliminated entirely by July 1, 2028.
Income-Contingent Repayment (ICR)
Phase-Out25yr termPayments are the lesser of 20% of discretionary income or a fixed 12-year plan adjusted for income.
Eligibility: All Direct Loan borrowers (only IDR option for Parent PLUS after consolidation)
⚠️ Closing to new enrollments July 1, 2026. Eliminated entirely by July 1, 2028.
SAVE Plan
TerminatedFormerly the most generous IDR plan. Terminated following court ruling.
Eligibility: N/A — no longer available
⚠️ Terminated March 10, 2026. Borrowers must switch to another plan.
The Forgiveness "Tax Bomb" Is Back
Here is the gut punch nobody prepared you for: As of January 1, 2026, the temporary federal tax exemption on student loan forgiveness (from the American Rescue Plan) has expired. Most IDR forgiveness is now considered taxable income again.
The Math That Shocks People
If you are on a 20- or 25-year Income-Driven Repayment (IDR) plan and reach forgiveness, the IRS treats that forgiven balance as "cancellation of debt" income.
Example: A borrower has $80k forgiven. At a 22% marginal tax rate, they suddenly owe the IRS ~$17,600 in a single year, plus any state taxes. You will receive a Form 1099-C from your servicer.
What Stays Tax-Free?
Not all forgiveness is a tax bomb. The following programs remain federally tax-free:
- Public Service Loan Forgiveness (PSLF)
- Teacher Loan Forgiveness
- Total and Permanent Disability (TPD) Discharge
- Death Discharge
- Closed School Discharge
The Insolvency Escape Hatch
If your total liabilities (debt) exceed your total assets at the exact time your loans are forgiven, you may be able to file IRS Form 982. This allows you to claim "insolvency" and exclude some or all of the forgiven debt from your taxable income.
State-by-State Wild Card
Even if you dodge the federal tax bill, some states do not conform to federal tax codes. You could owe state income tax on the forgiven amount depending on where you live. Start building a "tax bomb fund" in a high-yield savings account years in advance, and consult a CPA.
Sources: IRS Publication 4681 (Canceled Debts), IRS Form 982, Bankrate Student Loan Tax Guide.
Federal vs. Private Student Loans
Federal student loans should almost always be your first option due to their borrower protections and fixed rates. Private loans are typically used only after exhausting federal aid, grants, and scholarships.
| Feature | Federal Loans | Private Loans |
|---|---|---|
| Interest Rates | Fixed; set by Congress (6.39%–8.94% for 2025–26) | Fixed or variable; 3%–13%+ based on credit |
| Credit Check | No (except PLUS loans) | Required for all borrowers |
| Cosigner | Not needed (endorser for PLUS if adverse credit) | Often required for students |
| Income-Driven Plans | Yes — Standard, Extended, IBR, RAP (new 2026) | Generally not available |
| Loan Forgiveness | PSLF, Teacher, IDR forgiveness | Not available |
| Grace Period | 6 months after graduation | Varies; often none |
| Deferment/Forbearance | Multiple federal options available | Limited; varies by lender |
| Borrowing Limits | Yes — annual and aggregate caps | Up to cost of attendance (credit-based) |
| Best For | Most students — apply via FAFSA first | Gap funding after exhausting federal aid |
Student Loan Forgiveness Programs
Two major federal programs can forgive part or all of your student loan balance. You cannot count the same years of service toward both programs.
Public Service Loan Forgiveness (PSLF)
Forgiveness: Entire remaining balance (tax-free)
Required: 120 qualifying payments (10 years)
Eligible Loans: Direct Loans only
Employment: Full-time (30+ hrs/week) for:
- U.S. federal, state, local, or tribal government
- 501(c)(3) non-profit organizations
- Other qualifying public service non-profits
Repayment: Must be on IDR or Standard plan
Note: Payments do not need to be consecutive
Teacher Loan Forgiveness
Forgiveness: Up to $5,000 (most teachers) or $17,500 (STEM/Special Ed)
Required: 5 consecutive years of full-time teaching
Eligible Loans: Direct Sub/Unsub and Stafford Loans (not PLUS)
School: Must be a low-income elementary or secondary school
Qualifications:
- Bachelor's degree required
- Full state teaching certification
- Must be "highly qualified" in subject area
Note: You cannot count the same years for both PSLF and Teacher Forgiveness.
Your Servicer's Payment Count Is Probably Wrong
We know this is infuriating. MOHELA errors in PSLF payment counts are the top complaint among borrowers. After years of data migration between servicers (like FedLoan to MOHELA), borrowers routinely report their payment counts dropping, freezing, or disappearing entirely.
The 5-Step PSLF Audit Process
Getting angry at hold music won't fix your count. Documenting everything will. Here is exactly what you need to do:
- 1.Download the Source of Truth: Log into StudentAid.gov (not your servicer's portal) and download your full loan data file. The Department of Education's data is what actually dictates your forgiveness.
- 2.Cross-Reference: Match the federal data against your personal bank statements for every month you made a payment.
- 3.Resubmit ECFs: File an Employment Certification Form (ECF) for every past employer again. Resubmitting forces the system to generate a new timestamp and review.
- 4.File a Reconsideration: If the counts are demonstrably wrong, file a formal PSLF Reconsideration Request directly through the Department of Education.
- 5.Escalate: If you don't see a resolution in 90 days, escalate to the FSA Ombudsman (via the Federal Student Aid Feedback Center) and contact your Congressional representative's constituent services.
The Consolidation Count Reset Trap
If you consolidated older FFEL loans into Direct Loans to qualify for PSLF, your payment count historically restarted at zero. While the limited PSLF waiver (which expired in Oct 2022) retroactively credited those payments for some, if you missed that specific window or the later IDR account adjustment, you are likely starting fresh. Do not consolidate blindly.
Sources: StudentAid.gov Feedback Center, CFPB Student Loan Complaint Database, GAO Reports on PSLF.
The Consolidation Trap Nobody Warns You About
Consolidation and refinancing are constantly confused. Consolidation sounds like a smart move, and sometimes it is. But if you do it wrong, you could lose years of progress toward forgiveness or accidentally increase your total interest costs.
Consolidation ≠ Refinancing
Federal Consolidation: A government program that keeps your loans federal. Your new interest rate is the weighted average of your old loans, rounded up to the nearest 1/8th of a percent.
Private Refinancing: Taking a new private loan to pay off your federal loans. You might get a lower interest rate based on your credit, but you permanently kill all federal protections (IDR plans, PSLF, deferment).
The Rounding Trap
Federal consolidation does not lower your interest rate. In fact, because of the rounding rule, it usually increases it slightly.
If your weighted average rate is 5.31%, your consolidated rate becomes 5.375%. On a $60K balance over 20 years, that tiny rounding difference costs you an extra $430 in interest. Any outstanding interest on your old loans is also capitalized (added to principal).
The PSLF Count Reset Trap
Unless a specific temporary waiver is active, consolidating your federal loans creates a brand new loan. This means your PSLF and IDR payment counts reset to zero.
Example: Sarah had 85 qualifying PSLF payments on her FFEL loans. She consolidated into a Direct Loan in 2024 to "make tracking easier." Her count reset to 0. She is now 85 payments behind where she started. Only consolidate if you absolutely must (like converting older FFEL loans to Direct Loans to become eligible for PSLF in the first place).
Sources: StudentAid.gov (Direct Consolidation Loans), National Consumer Law Center, CFPB Consolidation Guide.
Should You Refinance Your Student Loans?
Refinancing replaces one or more existing loans with a new private loan at a potentially lower rate. But for federal loan borrowers, refinancing is a permanent, irreversible decision with significant trade-offs.
| ✓ Consider Refinancing If... | ✗ Avoid Refinancing If... |
|---|---|
| Strong credit (typically 650+) and stable income | Pursuing Public Service Loan Forgiveness (PSLF) |
| You don't need federal IDR plans or forgiveness | You rely on or might need income-driven repayment |
| You can secure a significantly lower fixed rate | Your financial situation is unstable |
| You have multiple loans and want one payment | You are still in school (lose grace period) |
| Your loans are already private (nothing to lose) | You have subsidized loans (lose interest benefit) |
⚠️ Warning: Once you refinance federal loans into a private loan, you permanently lose access to all federal benefits: income-driven repayment plans, deferment and forbearance options, and forgiveness programs (PSLF, Teacher, IDR forgiveness). This decision cannot be reversed.
Student Loans and Buying a House: The DTI Math
Many student loan borrowers mistakenly believe they cannot buy a house until their loans are fully paid off. You probably can buy a house. The math just works differently than you think, especially with recent favorable changes to FHA guidelines.
How Mortgage Lenders Actually View Your Loans
Lenders care about your monthly payment impacting your cash flow, not your total overall balance. They calculate your Debt-to-Income (DTI) ratio. A borrower with a $120,000 balance who pays $0/month on an IDR plan hits their DTI very differently than a borrower with a $30,000 balance making a $350/month Standard payment.
The Old "1% Rule" is Mostly Dead
In the past, FHA rules required lenders to assume your monthly payment was 1% of your total balance — even if you were on an IDR plan paying much less. This inflated DTIs and ruined approvals. Now, lenders are generally permitted to use your actual reported monthly payment, which significantly increases purchasing power for borrowers on income-driven plans.
DTI Thresholds That Matter
- Conventional: Typically look for a back-end DTI of 43–45% (some go to 50% with strong credit).
- FHA: 43% guideline, but the TOTAL Scorecard automated system can often approve up to 56.99% if you have strong compensating factors (high credit, cash reserves).
- VA Loans: No hard DTI cap, relies on a "residual income" test instead.
Worked Example
Jake earns $75K/year ($6,250/month gross). His IDR student loan payment is $400/month, and his car payment is $350/month. That is $750 in existing debt.
At a max 43% DTI allowance, his total allowed monthly debt is $2,687. Subtracting his $750 existing debt leaves $1,937 available for a housing payment (PITI). Depending on rates and taxes, that supports roughly a $310K–$340K mortgage.
Sources: HUD.gov (FHA Handbook 4000.1), CFPB Mortgage Qualification Guides, Fannie Mae Selling Guide.
Pay Off Loans or Invest? The Real Math
The internet will argue about this forever. But if you are trying to decide whether to aggressively pay down your student loans or invest your extra cash, here is what the math actually says.
1. The Golden Rule: Get the Match First
Always capture your full employer 401(k) match before making extra loan payments. A 50% or 100% employer match is a guaranteed 50–100% return on your money. No student loan interest rate is high enough to justify throwing away free money.
The SECURE 2.0 Hack
Under the SECURE 2.0 Act (effective 2024), employers can treat your qualified student loan payments as if they were 401(k) contributions for matching purposes. This means you could be earning a 401(k) match from your employer just by paying your student loans, without contributing a dime to the 401(k) yourself. Check with your HR department immediately to see if they adopted this provision.
The Breakeven Math
Paying off a loan at 6.39% gives you a guaranteed, risk-free 6.39% return.
Historically, the S&P 500 averages a ~10.2% nominal return. However, if you deduct up to $2,500 of student loan interest on your taxes, your "effective" loan rate is actually lower (e.g., 5.1% to 5.7%).
The logic: Invest if your expected after-tax market return reliably exceeds your after-tax loan rate.
Psychology Matters Too
Spreadsheets don't account for stress. The psychological weight of debt is a real cost. If carrying $80K in loans keeps you up at night, affects your relationships, or forces you to take a job you hate just for the salary, the "optimal math" doesn't matter. Peace of mind has a high ROI.
Our Practical Framework
- Step 1: Capture the full employer 401(k) match (via deferral or SECURE 2.0).
- Step 2: Build a 3-month emergency fund.
- Step 3: If your loans are > 7%, pay them down aggressively. It's hard to beat a guaranteed 7% return.
- Step 4: If your loans are < 5%, pay the minimums and invest the rest in tax-advantaged accounts.
- Step 5: Loans between 5% and 7%? It's a judgment call between your risk tolerance and debt aversion.
Sources: IRS Publication 970 (Student Loan Interest Deduction), Schwab SECURE 2.0 Guide, Vanguard Historical Returns.
What Happens If You Default (and How to Fix It)
If you missed payments during the transition away from the SAVE plan, or if you graduated into a tough job market, default feels like the end of the world. It is not. But the consequences are severe, and you need to act fast.
The Consequences of Default
Federal student loans typically enter default after 270 days (about 9 months) of missed payments. Once in default, the government has extraordinary collection powers that private lenders do not have:
- Wage Garnishment: Up to 15% of your disposable pay can be seized directly from your employer, without a court order.
- Tax Offset: The Treasury Offset Program (TOP) can seize your entire federal and state tax refunds.
- Social Security: Up to 15% of your Social Security or disability benefits can be withheld.
- Credit Damage: Your credit score will plummet, making it hard to rent an apartment, buy a car, or even get certain jobs.
How to Get Out of Default
You have two primary paths to restore your loans to good standing:
1. Loan Rehabilitation: You agree to make 9 affordable monthly payments over 10 months. The massive benefit here is that successful rehabilitation removes the record of the default from your credit history.
2. Loan Consolidation: You consolidate the defaulted loans into a new Direct Consolidation Loan. This is faster than rehabilitation, but the original default remains on your credit report for up to 7 years.
Can I Declare Bankruptcy?
It is a myth that student loans can never be discharged in bankruptcy. They can be discharged if you can prove "undue hardship" under the Brunner test. While historically difficult, a 2023 DOJ policy change standardized the evaluation process with a clear attestation form, making the path to federal student loan discharge significantly more accessible for borrowers experiencing genuine, long-term financial distress. The recent OBBBA did not change bankruptcy rules.
Sources: StudentAid.gov (Default & Rehabilitation), ED.gov Wage Garnishment Regs, DOJ.gov Bankruptcy Attestation Guidance.
Average Student Loan Debt by Degree (2025)
Student loan debt varies dramatically by degree level and field of study. Professional programs like medicine and dentistry carry the highest balances but also typically offer the highest earning potential.
| Degree Level | Average Debt Range | Source |
|---|---|---|
| Bachelor's Degree | $29,000 – 36,500 | Educationdata.org |
| Master's Degree | $64,000 – 82,000 | Educationdata.org |
| Law School (JD) | $110,000 – 140,000 | ABA / Educationdata.org |
| Medical School (MD) | $190,000 – 220,000 | AAMC |
| Dental School (DDS) | $280,000 – 305,000 | ADEA |
| Other Doctoral | $150,000 – 215,000 | Educationdata.org |
Figures represent 2025 estimates. Actual debt varies by institution, state, and individual borrowing decisions.
Student Loan Glossary
Key terms every student loan borrower should understand.
Capitalization
When unpaid interest is added to your loan's principal balance. This causes you to pay interest on interest, increasing your total cost. Common during grace period for unsubsidized loans.
Grace Period
A period (typically 6 months for federal Direct Loans) after you graduate, leave school, or drop below half-time enrollment before your first payment is due.
Subsidized vs. Unsubsidized
Subsidized loans: government pays interest while you're in school, during grace, and during deferment. Unsubsidized loans: interest accrues from the moment the loan is disbursed.
FAFSA (Free Application for Federal Student Aid)
The required application to access federal student loans, grants, and work-study. Must be completed for each academic year.
Deferment
A temporary pause on loan payments. For subsidized loans, interest does not accrue during deferment. For unsubsidized loans, interest continues to accrue.
Forbearance
A temporary pause or reduction of loan payments during financial hardship. Unlike deferment, interest accrues on all loan types during forbearance.
Consolidation
Combining multiple federal loans into a single Direct Consolidation Loan. The new interest rate is the weighted average of your existing rates, rounded up to the nearest ⅛%. Consolidation is required for FFEL/Perkins loans to qualify for PSLF.
Refinancing
Replacing federal or private loans with a new private loan at a potentially lower interest rate. Warning: refinancing federal loans into private loans permanently removes access to federal protections, IDR plans, and forgiveness programs.
Cost of Attendance (COA)
The total estimated cost of attending a school for one year, including tuition, fees, room, board, books, transportation, and personal expenses. PLUS loans can cover up to the COA minus other aid received.
Loan Servicer
The company that handles billing and payment processing for your federal student loans. Servicers include MOHELA, Aidvantage, EdFinancial, and Nelnet.
Student Loan Calculator FAQ
Common questions about student loans, repayment, interest rates, forgiveness, and this calculator.
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Disclaimer: This calculator provides estimates for educational planning purposes only and does not constitute financial advice. Actual loan terms, interest rates, and repayment amounts will be determined by your lender and the U.S. Department of Education. Federal student loan program rules are subject to change — especially regarding upcoming RAP plan details and Graduate PLUS elimination (effective July 1, 2026). Always verify current terms at StudentAid.gov. For personalized advice, consult with your school's financial aid office or a qualified financial advisor.