Student Loan Calculator
Calculate your student loan payments, compare repayment plans, and discover the fastest path to becoming debt-free or qualifying for loan forgiveness.
Your Student Loans
Used for income-driven repayment calculations
Affects poverty line calculation
Loan Summary
Repayment Plan Comparison
| Plan | Monthly Payment | Total Interest | Total Paid | Term | Select |
|---|---|---|---|---|---|
| Standard (10 years) | $325.58 | $9,069 | $39,069 | 10 years | |
| Graduated (10 years) | $195.35 | $9,069 | $39,069 | 10 years | |
| Extended (25 years) | $184.23 | $25,268 | $55,268 | 25 years | |
| IBR (Old - 15%) | $342.63 | $72,788 | $102,788 | 25 years | |
| IBR (New - 10%) | $228.42 | $24,820 | $54,820 | 20 years | |
| SAVE (Undergrad) | $114.21 | $0 | $27,410 | 20 years | |
| PAYE (10%) | $228.42 | $24,820 | $54,820 | 20 years | |
| ICR (20%) | $456.83 | $107,050 | $137,050 | 25 years |
Amortization Schedule
Understanding Student Loans
Americans owe over $1.7 trillion in student loan debt, making it the second-largest category of consumer debt after mortgages. Understanding your options is crucial for managing this debt effectively.
Federal Loans
- Fixed rates: Set by Congress each year
- Income-driven options: Payments based on income
- Forgiveness programs: PSLF, IDR forgiveness
- Deferment/forbearance: Pause payments if needed
- No credit check: For most federal loans
Private Loans
- Variable/fixed rates: Based on creditworthiness
- No federal protections: Limited relief options
- No forgiveness: Must repay in full
- Credit-based: May need cosigner
- Potentially lower rates: For excellent credit
The SAVE Plan: A Game-Changer
The SAVE plan (Saving on a Valuable Education) replaced REPAYE in 2024 and offers the most generous terms for income-driven repayment:
For undergraduate loans only (10% for grad)
Income below 225% of poverty is protected (was 150%)
Unpaid interest doesn't capitalize (balance won't grow)
Example: Single borrower earning $40,000
With the 225% poverty protection ($33,885 for a family of 1), discretionary income is only $6,115. Monthly SAVE payment: $25.48 (5% ÷ 12 months). Compare to standard 10-year payment of $322 on $30,000 at 5.5%.
Public Service Loan Forgiveness (PSLF)
PSLF forgives your remaining federal student loan balance after 120 qualifying monthly payments (10 years) while working full-time for a qualifying employer. The forgiven amount is tax-free.
Qualifying Employers
- ✓Federal, state, local, or tribal government
- ✓501(c)(3) nonprofit organizations
- ✓AmeriCorps or Peace Corps (full-time)
- ✓Public education institutions
- ✓Public hospitals and health services
Requirements Checklist
- □Work full-time (30+ hours/week)
- □Have Direct Loans (consolidate if needed)
- □Enroll in an income-driven repayment plan
- □Make 120 qualifying payments
- □Submit PSLF form annually and when changing employers
Strategic Repayment Approaches
Aggressive Payoff Strategy
Best for: High earners who want to minimize total interest paid
- • Choose standard 10-year or pay extra each month
- • Target highest interest rate loans first (avalanche)
- • Refinance to lower rate if eligible
- • Use bonuses/windfalls for lump sum payments
- • Consider employer repayment benefits
Forgiveness Maximization Strategy
Best for: Public servants and those with high debt-to-income ratios
- • Enroll in SAVE for lowest possible payments
- • Work toward PSLF (10 years) or IDR forgiveness (20-25 years)
- • File taxes married filing separately if beneficial
- • Maximize retirement contributions (lowers AGI)
- • Never pay extra—let forgiveness do the work
Common Student Loan Mistakes to Avoid
Ignoring loans during grace period
Interest accrues on unsubsidized loans during the 6-month grace period. Making interest-only payments prevents capitalization when repayment begins.
Not recertifying income annually
Income-driven plans require annual recertification. Missing the deadline can result in payment spikes and capitalized interest.
Refinancing federal loans to private
You lose access to income-driven repayment, forgiveness programs, and federal protections. Only refinance if you're certain you won't need these options.
Paying extra when pursuing forgiveness
If you're on track for PSLF or IDR forgiveness, extra payments just reduce the amount that will be forgiven. Invest that money instead.
Not submitting PSLF forms regularly
Submit the Employment Certification Form annually and whenever you change employers to track your qualifying payments and catch errors early.
Frequently Asked Questions
Which repayment plan should I choose?
If pursuing PSLF: Choose SAVE for the lowest payments and maximum forgiveness. If paying off aggressively: Standard 10-year minimizes interest. If cash flow is tight but you're not in public service: SAVE protects more income while you build your career.
Should I consolidate my federal loans?
Consolidation simplifies multiple loans into one payment and is required for PSLF if you have FFEL or Perkins loans. However, it can reset your payment count for IDR forgiveness and results in a weighted average interest rate (rounded up).
Is student loan forgiveness taxable?
PSLF forgiveness is always tax-free. IDR forgiveness is currently tax-free through 2025 under the American Rescue Plan. After 2025, forgiven amounts may be taxed as income unless Congress extends the exemption.
Can I switch repayment plans?
Yes, you can switch between repayment plans at any time. Switching to an IDR plan may capitalize any unpaid interest. Your PSLF qualifying payment count continues as long as you stay on an IDR plan.
What happens if I can't make payments?
Contact your servicer immediately. Options include: switching to an income-driven plan (payments could be $0), deferment (if you qualify), or forbearance (last resort, as interest continues). Never default—it has severe consequences.