How student loan payments are calculated
Most student loans are paid back in equal monthly payments that cover interest and principal. Federal loans on the standard plan last 10 years; private loans often run 5 to 20 years. Enter your balance, interest rate and term to see your monthly payment and total interest.
Add an extra monthly payment to see how much sooner you could be debt-free. Extra money goes to principal, which lowers the interest charged every month after.
Tips for paying off student loans
- Tell your servicer how to apply extra payments – ask that extra money go to principal on your highest-rate loan rather than paying ahead on future bills.
- Sign up for autopay – federal servicers and many private lenders cut your rate by 0.25 percentage point.
- Look at income-driven plans – federal loans offer payments based on your income, and some careers qualify for Public Service Loan Forgiveness.
- Refinance with care – refinancing federal loans into a private loan can lower your rate but ends federal protections such as income-driven plans and forgiveness programs.
Frequently asked questions
Is student loan interest tax-deductible?
You may deduct up to $2,500 of student loan interest a year without itemizing. The deduction phases out at higher incomes.
When do I have to start repaying?
Most federal student loans have a six-month grace period after you graduate, leave school or drop below half-time enrollment. Interest on unsubsidized loans still builds during that time.
Should I pay off student loans or invest?
Many people pay extra on loans with rates above about 6% to 7% and invest when rates are low, after getting any 401(k) match and building an emergency fund.