Student Loan Calculator
Calculate student loan payments, total interest, and compare repayment plans. Updated with 2026 federal interest rates.
Updated June 2026 | Federal rates: Undergrad 6.53% | Grad 8.08% | PLUS 9.08%
Enter your loan balance, rate, and term, then click "Calculate Repayment" to see your payment plan.
How Student Loan Repayment Works
Student loans work differently from other types of debt. Federal loans come with fixed interest rates set by Congress, multiple repayment plan options, and built-in protections like deferment, forbearance, and forgiveness programs. Here's what you need to know:
- Interest accrues daily — Unlike mortgages where interest is calculated monthly, student loan interest compounds daily. This means making payments earlier in the month reduces your total interest slightly more than waiting until the due date.
- Standard Repayment (10 years) — The default plan for federal loans. Fixed monthly payments ensure you're debt-free in 10 years. This is the fastest standard option and you pay the least total interest.
- Extended Repayment (up to 25 years) — Available for borrowers with more than $30,000 in Direct Loans. Lower monthly payments but significantly more total interest — often 2-3× more than the standard plan.
- Interest Capitalization — When you leave school, change repayment plans, or exit deferment/forbearance, any unpaid interest is added to your principal balance. This increases your loan balance and the total interest you'll pay.
- Extra Payments — There are no prepayment penalties on federal loans. Paying extra directly reduces your principal, saving you interest and cutting years off your repayment term. Even $25/month extra makes a difference.
2026 Federal Student Loan Interest Rates
Federal loan rates are fixed for the life of the loan and set annually each July. These are the rates for the 2025-2026 award year:
| Loan Type | 2026 Rate | Origination Fee | Monthly Payment* |
|---|---|---|---|
| Undergraduate Direct | 6.53% | 1.057% | $341 |
| Graduate Direct | 8.08% | 1.057% | $365 |
| Parent PLUS | 9.08% | 4.228% | $380 |
| Grad PLUS | 9.08% | 4.228% | $380 |
| Private Loans (avg) | 7-15% | 0% | Varies by credit |
* Example monthly payment on $30,000 loan, 10-year standard repayment
Standard vs Extended Repayment: Real Comparison
Choosing between a shorter and longer term is one of the biggest financial decisions you'll make. Here's how the options compare on a $35,000 loan at 6.53%:
⚡ 10-Year Standard
- Monthly Payment: ~$398
- Total Interest: ~$12,760
- Total Repaid: ~$47,760
- Debt-Free: 10 years
- Best for: Borrowers who can afford higher payments and want to minimize total cost
📉 25-Year Extended
- Monthly Payment: ~$237
- Total Interest: ~$36,100
- Total Repaid: ~$71,100
- Debt-Free: 25 years
- Best for: Borrowers who need lower monthly payments and understand the higher long-term cost
6 Tips to Pay Off Student Loans Faster
- Pay During Grace Period — Federal loans have a 6-month grace period after graduation. Making interest payments during this time prevents capitalization and can save you hundreds. Even paying the interest alone ($190/month on $35K at 6.53%) keeps your balance from growing.
- Target High-Interest Loans First — If you have multiple loans with different rates (e.g., 6.53% undergrad + 8.08% grad + 9.08% PLUS), pay extra toward the highest-rate loan first while making minimums on the rest. This avalanche method saves the most money.
- Consider Refinancing — If you have strong credit (700+) and stable income, refinancing federal loans with a private lender could lower your rate from 6.53% to 5-7%. However, you'll lose federal protections (forgiveness, deferment, IDR). Only refinance federal loans if you're certain you won't need those protections.
- Set Up Auto-Pay — Most servicers offer a 0.25% interest rate reduction for enrolling in automatic payments. On a $35K loan at 6.53%, that saves roughly $200+ over the life of the loan.
- Use Windfalls Strategically — Tax refunds (average $3,000), work bonuses, and gifts should go directly to student loan principal. A single $3,000 extra payment early in repayment saves ~$1,200 in interest and cuts 8-10 months off your repayment.
- Apply for Income-Driven Repayment — If your income is low relative to your debt, IDR plans like SAVE or PAYE can lower your monthly payment to as little as $0. After 20-25 years, any remaining balance is forgiven. Use this calculator alongside your loan servicer's tools to see if IDR makes sense for you.
Frequently Asked Questions
What happens if I don't make my student loan payments?
Missing payments leads to delinquency (after 1 day past due), then default (after 270 days for federal loans). Default consequences include: damaged credit score, wage garnishment (up to 15% of disposable income), tax refund seizure, loss of deferment/forbearance options, and ineligibility for additional federal aid. Unlike other debt, student loan default has no statute of limitations.
Are student loans dischargeable in bankruptcy?
Student loans are notoriously difficult to discharge in bankruptcy. You must prove "undue hardship" using the Brunner test: (1) you cannot maintain a minimal standard of living if forced to repay, (2) your financial situation is unlikely to improve, and (3) you've made good-faith efforts to repay. This standard is rarely met — less than 1% of bankruptcy filers successfully discharge student loans.
Should I pay off student loans or save for retirement?
Generally: (1) Build a small emergency fund ($1,000-2,000), (2) Contribute to your 401(k) up to the employer match (free money), (3) Pay down loans above 6-7% interest aggressively, (4) Once high-interest loans are gone, go back to maxing retirement accounts. The decision depends on your loan rate vs. expected investment returns. Use our Debt Payoff Calculator to see your exact trade-off.
How does Public Service Loan Forgiveness work?
PSLF forgives remaining federal Direct Loan balances after 120 qualifying payments (10 years) while working full-time for a qualifying government or non-profit employer. Payments must be made under an income-driven repayment plan. Since the program's overhaul in 2021, approval rates have improved significantly — from under 2% to over 50%. Use the PSLF Help Tool on studentaid.gov to check your eligibility.
Can I deduct student loan interest on my taxes?
Yes — you can deduct up to $2,500 in student loan interest paid per year, even if you don't itemize deductions. The deduction phases out for single filers with modified adjusted gross income above $80,000 ($165,000 for married filing jointly). This is an "above-the-line" deduction, meaning you can claim it regardless of whether you itemize. Use our Take-Home Pay Calculator to see how this deduction affects your taxes.
Sources: Federal Student Aid (FSA) 2025-2026 interest rates, College Board Trends in College Pricing 2026, Bureau of Labor Statistics starting salary data. Loan forgiveness program availability subject to policy changes.