What's the difference between subsidized and unsubsidized federal loans?

Subsidized loans don't accrue interest while you're in school at least half-time, during grace periods, or deferment — the government pays it. Unsubsidized loans accrue interest from disbursement. That interest capitalizes (adds to principal) when repayment starts, which is why unsubsidized balances are often higher than what you originally borrowed.

Is refinancing federal student loans a good idea?

Refinancing converts federal loans to private, permanently eliminating federal protections: income-driven repayment options, forbearance, PSLF eligibility, and any future forgiveness programs. It only makes sense if you have stable income, aren't pursuing PSLF, don't anticipate needing IDR, and can secure a meaningfully lower rate than your current federal rate.

How does income-driven repayment work?

IDR plans (SAVE, PAYE, IBR, ICR) cap monthly payments at 5–10% of discretionary income. After 20–25 years of qualifying payments, the remaining balance is forgiven. The forgiven amount is currently taxable income — plan for a large tax bill in the forgiveness year. Payments can be as low as $0 if your income is below the threshold.

What is PSLF and how do I qualify?

Public Service Loan Forgiveness forgives remaining federal loan balances after 120 qualifying monthly payments made while working full-time for a qualifying public service employer (government, 501(c)(3) nonprofit). Must be on an IDR plan. Tax-free forgiveness. Submit an Employment Certification Form annually to track progress and avoid surprises at the 10-year mark.

Should I pay off student loans or invest?

If your loan rate is below 6–7%, many financial planners suggest investing in tax-advantaged accounts (especially to capture employer 401(k) match) while making standard loan payments. If your rate is above 7%, paying down debt first gives a guaranteed return equal to your interest rate — often better than the after-tax return of investing.

🏦Borrowing

Student Loan Calculator – When Will You Finally Be Debt-Free?

How long will student loans follow you?

What This Does

Student loans are the debt that follows you everywhere — through your first job, your marriage, your kids' childhoods, and sometimes into your 50s. Most borrowers don't actually know when they'll pay off their loans or how much they'll pay in total. This calculator changes that. Enter your current balance, interest rate, and loan type. Choose your repayment plan — standard 10-year, extended, graduated, or income-driven — and instantly see your monthly payment, payoff date, and total interest paid over the life of the loan. Then run "what if" scenarios: what happens if you pay an extra $100/month? What does refinancing at a lower rate actually save you? The results are often eye-opening. A $35,000 balance at 6.5% on a standard 10-year plan costs $13,000 in interest. Switch to a 25-year extended plan and that same balance costs $35,000 more in interest — you pay for the degree twice. Income-driven repayment can drop monthly payments to near zero, but forgiveness is taxable income, so the total cost equation is complex. This is the calculator to use when a major repayment decision is on the table: starting a new plan, considering refinancing, evaluating PSLF eligibility, or simply understanding what your loans actually cost.

Assumptions

·Fixed interest rate for the full term (federal rates are fixed; private loan rates may be variable)
·Standard repayment: 10 years · Extended: 25 years · Graduated: starts lower, increases every 2 years · IDR: varies by plan
·Income-driven repayment payment estimates require income and family size — use the official Federal Student Aid estimator for precise IDR calculations
·PSLF: 120 qualifying payments on an IDR plan while working for a qualifying employer — forgiven balance may be tax-free (consult a tax advisor)
·Forgiveness under IDR plans (20–25 years) is currently taxable income — amounts to a large one-time tax bill in the forgiveness year

How It's Calculated

Monthly payment (standard amortization): M = P × [r(1+r)^n] / [(1+r)^n – 1] Where: P = loan balance · r = monthly rate (annual rate ÷ 12) · n = repayment term in months. Total interest = (M × n) – P Example: $35,000 at 6.5% over 10 years (120 payments): r = 0.005417 · M = $396/month · Total paid = $47,520 · Total interest = $12,520. Same balance on 25-year extended plan: M = $237/month · Total paid = $71,100 · Total interest = $36,100 — nearly 3× the standard plan interest.

When Should You Use This?

→You just graduated and want to understand the full cost of your 10-year standard plan
→You're considering switching to income-driven repayment
→You want to see how much extra monthly payments cut your payoff timeline
→You've received a refinancing offer and want to calculate actual savings vs. lost federal benefits
→You're planning for PSLF and need to model whether 10 years at a qualifying employer makes financial sense

Worked Examples

Example 1: Standard 10-year vs. extra $150/month

Inputs: Balance: $38,000 · Rate: 6.8% · Standard 10-year plan

Result: Standard: $437/month · payoff month 120 · total interest $14,440 | With $150 extra: $587/month · payoff month 84 (7 years) · total interest $9,240 · saves $5,200 and 3 years

$150/month extra — roughly the cost of a streaming bundle and one dinner out — eliminates 3 years of debt and saves $5,200 in interest. The extra payments reduce the balance faster, shrinking the base on which future interest compounds.

Example 2: PSLF path vs. aggressive standard payoff

Inputs: Balance: $52,000 · Rate: 6.8% · Standard: $599/month · PSLF via IDR: ~$260/month for 10 years at qualifying employer

Result: Standard 10-year: total paid $71,880 | PSLF path: 120 payments × $260 = $31,200 total paid, $20,800 forgiven · PSLF saves $40,680

PSLF saves $40,680 — but only if you work 10 years at a qualifying nonprofit or government employer and make 120 qualifying payments on an IDR plan. If you leave qualifying employment before 120 payments, none of the progress applies to forgiveness.

Student Loan Calculator

Repayment Comparison · Extra Payments · IBR & PSLF · Refinancing Analysis

Results update in real time as you adjust any input.

Loan Details

Balance

Interest Rate

Repayment Term

Extra Monthly Payment

Refinance Rate

Income-Driven Repayment (IBR / PSLF)

Annual Income

Family Size

2024 FPL: $15,060 (1 person) + $5,380 per additional. IBR = 10% of income above 150% FPL. PSLF = same payment, 10-year forgiveness.

About This Calculator

This student loan calculator uses standard amortization: monthly payment = P × r × (1+r)^n / ((1+r)^n - 1). Income-Based Repayment (IBR) = max(0, (income - 1.5 × FPL) × 0.10 / 12), capped at the 10-year standard payment, with 20-year forgiveness. PSLF uses the same payment formula but forgives after 120 qualifying payments (10 years). Federal poverty guidelines: $15,060 for 1 person + $5,380 per additional family member (2024 continental US). All seven inputs recalculate in real time. IBR and PSLF panels appear only when annual income is entered.

The Repayment tab renders a dual-area chart of standard (red) and with-extra-payments (accent) balance decline over the full loan term, plus a line chart of total interest across rate scenarios from 2% to 12% with the current rate marked. The Scenarios tab renders a horizontal bar chart of total interest under all repayment plans (standard in red, extra payment in accent, refinanced in emerald, extended in orange, IBR in purple if income entered), plus a comparison table with monthly payment, total interest, total paid, and savings vs standard. The Amortization tab renders a stacked area chart showing principal (accent) vs interest (red) split for the first 36 months, plus the full amortization table with principal percentage mini-bar.

Score and tier: Aggressive Paydown (extraPayment 200+, emerald, 90), Accelerated Payoff (100+, indigo, 80), Refinance Candidate (rate over 7% with lower refi rate, indigo, 85), Consider IDR (debt-to-income over 1.5, amber, 60), Low Rate On Track (rate under 5%, emerald, 85), Standard Repayment (default, indigo, 70). IBR and PSLF callout cards appear when income is entered. Insights adapt to whether extra payments are entered, refinancing is advantageous, and IBR/PSLF options are relevant. Four What To Do Next steps cover payment strategy, refinancing evaluation, income-driven assessment, and federal vs private loan guidance.

Results are estimates only and do not constitute financial, tax, or legal advice. Always consult a qualified professional before making financial decisions.

Related Calculators

Browse all

🏦More Borrowing

You Might Also Need

All Borrowing Calculators

28 free tools

Common Mistakes to Avoid

✕Switching repayment plans without modeling the total interest cost — a lower payment almost always means more total interest paid
✕Refinancing federal loans to private loans without understanding the permanent loss of IDR, forbearance, and PSLF options
✕Not pursuing PSLF if you work for a qualifying employer — the savings can be $20,000–$80,000+ for those with high balances
✕Assuming IDR forgiveness is 'free' — forgiven amounts are currently taxable as income in the forgiveness year
✕Capitalizing interest unnecessarily — interest that isn't paid during deferment or forbearance adds to your principal and compounds from that higher balance

Frequently Asked Questions