Student Loan Calculator

📚 Types of Student Loans

Federal Loans: Fixed rates, income-driven repayment options, potential forgiveness programs. Rates for 2024-25: 6.53% (undergrad), 8.08% (grad), 9.08% (PLUS).

Private Loans: Variable or fixed rates (3-14%), based on credit score. Fewer repayment options but can refinance for lower rates.

💰 How Extra Payments Help

Extra payments go directly to principal, reducing the balance that accrues interest. Even $50-100 extra per month can save thousands in interest and shorten your payoff time by years.

Pro tip: Make extra payments right after your regular payment to maximize impact.

🎯 Repayment Strategies

• Avalanche: Pay highest interest rate first (saves most money)
• Snowball: Pay smallest balance first (psychological wins)
• Income-Driven: Payments based on income (federal loans only)
• Refinancing: Combine loans for lower rate (lose federal benefits)

🚀 Tips for Faster Payoff

• Enroll in autopay for 0.25% rate reduction
• Apply tax refunds and bonuses to principal
• Make biweekly half-payments (26 payments/year)
• Keep living like a student for 2-3 years post-graduation
• Consider employer loan repayment assistance programs

How do I calculate my student loan payment?

Monthly student loan payments are calculated using the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan balance, r is the monthly interest rate (annual rate ÷ 12), and n is the number of months.

How much can I save by making extra payments?

Extra payments can dramatically reduce both interest paid and payoff time. For example, on a $30,000 loan at 6% over 10 years, paying an extra $100/month saves approximately $2,400 in interest and reduces the payoff time by 2.5 years.

What is the average student loan interest rate?

Federal student loan rates for 2024-2025 are 6.53% for undergraduate loans, 8.08% for graduate loans, and 9.08% for PLUS loans. Private student loan rates vary from 3% to 14% based on creditworthiness.

Should I pay off student loans early?

Paying off early can save thousands in interest. However, consider high-interest debt (credit cards), emergency savings, and employer 401(k) matching first. Federal loans with low rates may be worth keeping if you can earn more investing.

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