Student Loan Calculator
A student loan calculator is a tool that helps borrowers estimate the costs associated with student loans. Student loans are used to pay for higher education expenses including tuition, fees, room and board, books, and other educational costs. These loans can be federal or private, each with different terms and interest rates.
Student Loan: Paying Back a Fixed Amount Periodically
Use this calculator for basic calculations of student loans, or click the links for more detail on each.
Student Loan with Grace Period: Paying Back a Lump Sum Due at Loan Maturity
Student Loan with Deferment: Predetermined Amount Due at Loan Maturity
Use this calculator to compute the initial value of a student loan based on a predetermined face value to be paid back at loan maturity.
Student Loan: Fixed Amount Paid Periodically
Student loans are installment loans used to pay for higher education expenses. These loans typically have fixed or variable interest rates and terms ranging from 5 to 30 years. Federal student loans often have more flexible repayment options than private student loans.
Student Loan with Grace Period: Single Lump Sum Due at Loan Maturity
Many student loans offer a grace period after graduation or dropping below half-time enrollment before repayment begins. During this period, interest may continue to accrue on unsubsidized loans, increasing the total amount owed.
Student Loan with Deferment: Predetermined Lump Sum Paid at Loan Maturity
Some student loans offer deferment options that allow borrowers to temporarily postpone payments during periods of financial hardship, returning to school, or military service. Interest may continue to accrue during deferment periods.
Student Loan Basics for Borrowers
Interest Rate
Student loan interest rates can be fixed or variable. Federal student loans typically have fixed rates set by Congress each year, while private student loans may have fixed or variable rates based on the borrower's creditworthiness.
Loan Term
Student loan terms typically range from 10 to 30 years. Longer terms result in lower monthly payments but higher total interest costs over the life of the loan.
Repayment Options
Federal student loans offer various repayment plans including standard, graduated, extended, and income-driven repayment options. Private student loans typically have fewer repayment options.
Advantages of Student Loans
- Education Access: Makes higher education accessible to students who might not otherwise afford it
- Deferred Payments: Many loans allow deferment of payments until after graduation
- Tax Benefits: Student loan interest may be tax deductible
- Building Credit: Responsible repayment helps build credit history
- Flexible Repayment: Federal loans offer various repayment plan options
Student loans can make higher education possible for millions of students, but borrowers should carefully consider their future earning potential and repayment obligations before taking on significant debt.