Student Loan Calculator

How It Works

Federal student loans work like any fixed-rate loan: the same payment every month, with interest charged on the remaining balance and the rest of the payment reducing the principal. The payment comes from the standard amortization formula, using your balance, your fixed rate and the number of months in the term. What makes federal loans different is that the rate is set by law once a year, is the same for every borrower of that loan type, and never changes for the life of the loan — your credit score does not affect it.

For loans first disbursed between July 1, 2026 and June 30, 2027, the rates are 6.52% for Direct Subsidized and Unsubsidized Loans for undergraduates, 8.07% for Direct Unsubsidized Loans for graduate and professional students, and 9.07% for Direct PLUS Loans. Federal loans also carry a loan fee deducted from each disbursement — 1.057% on Direct Subsidized and Unsubsidized Loans and 4.228% on PLUS Loans — so you receive slightly less than you borrow but repay the full amount. This calculator models fixed Standard-plan payments only; income-driven plans and the Repayment Assistance Plan use different formulas, and the official Loan Simulator at StudentAid.gov is the right tool for those.

Worked Example

Take a $30,000 undergraduate Direct Loan at 6.52% on the 10-year Standard plan. The monthly payment is $340.95. Over 120 payments you pay $10,913.92 of interest, for a total of $40,913.92. The loan fee of 1.057% means $317.10 is deducted before the money reaches the school, so only $29,682.90 actually arrives — but you still repay the full $30,000 plus interest.

Extra payments change the picture quickly. Adding $50 a month — $390.95 instead of $340.95 — pays the loan off in 100 months (8 years and 4 months) instead of 120, with $8,921.46 of interest. That saves $1,992.46 of interest and 20 months of payments. The reason is the same as with any loan: extra money goes straight to principal, which shrinks the balance that future interest is charged on, and the effect compounds month after month.

Assumptions

• Payments follow the fixed Standard plan: the same amount every month for the full term.
• The interest rate is fixed for the life of the loan, as federal Direct Loan rates are.
• No deferment, forbearance, grace period or income-driven adjustment is included. Interest that accrues during school on unsubsidized loans is not added here — the balance you enter is assumed to be the balance at the start of repayment.
• Extra payments go entirely to principal, with no prepayment penalty. Federal loans have no prepayment penalty.
• The loan fee is shown for information; it does not change the payment, because you repay the full borrowed amount.

What this calculator leaves out: income-driven repayment, the Repayment Assistance Plan (which replaced the SAVE plan for new borrowers from July 1, 2026), Public Service Loan Forgiveness, teacher loan forgiveness, the 0.25% interest-rate reduction for automatic debit, and tax deductions for student loan interest. It also covers federal loans only — private student loans have different rates and terms set by the lender.

Stretching the term lowers the monthly payment but raises the total cost sharply. The table below shows the same $30,000 undergraduate loan at 6.52% over five terms:

The 25-year plan cuts the payment by about $138 a month compared with the Standard 10-year plan — but it nearly triples the total interest, from $10,913.92 to $30,881.17. A longer term buys monthly breathing room at a very high price, which is why it is worth choosing the shortest term you can genuinely afford.

How to Use This Calculator

Pick your loan type first — the rate updates automatically to the 2026–27 federal figure for that type. If your loan was disbursed in an earlier year, change the rate to the one on your loan documents; older loans keep their original fixed rate. Enter the balance you owe at the start of repayment and the term, and the calculator shows your monthly payment, total interest and total paid. Add an extra monthly payment to see how much faster the loan ends and how much interest you save.

If you have several federal loans at different rates, run each one separately and add the payments together — or use the weighted average rate as a rough guide. And if the Standard payment is more than your budget allows, do not just stretch the term: check the Repayment Assistance Plan and income-driven options on StudentAid.gov, which set the payment from your income and can lead to forgiveness after 20 or 25 years of qualifying payments.

Tips and Practical Advice

Pay interest while you are still in school if you can. On unsubsidized loans, interest accrues from the day the money is disbursed — on a $30,000 loan at 6.52%, that is about $163 a month — and unpaid interest is added to the balance when repayment starts, so you end up paying interest on interest. Subsidized loans are different: the government pays the interest while you are enrolled at least half time, during the grace period and during deferment.

Set up automatic debit. Federal loans offer a 0.25% interest-rate reduction for automatic payments, which is small but free, and it also protects you from missed payments. Then, whenever you get a raise, a bonus or a tax refund, send part of it to the loan as an extra principal payment — and confirm with your servicer that extra payments are applied to principal rather than advancing your due date.

If you are struggling, contact your servicer before you miss a payment. Deferment, forbearance and income-driven plans exist for exactly that situation, and they protect your credit. Missing payments without a plan leads to delinquency and eventually default, which damages your credit, adds collection costs, and can lead to wage garnishment and seized tax refunds.

Sources: U.S. Department of Education, Federal Student Aid — interest rates and fees for Direct Loans first disbursed Jul 1, 2026 – Jun 30, 2027 (undergraduate 6.52%, graduate 8.07%, PLUS 9.07%; fees 1.057% and 4.228%). The SAVE plan ended; new borrowers from Jul 1, 2026 choose Standard or the Repayment Assistance Plan. Last reviewed: 13 November 2026.

Frequently Asked Questions