Calculate monthly payments, total interest, and explore income-based repayment options
This student loan calculator computes standard monthly payments and also provides income-based repayment (IBR) estimates. Understanding your repayment options is crucial for managing student loan debt effectively after graduation. Student loans are unique because they offer income-driven repayment options that can make payments more manageable based on your earnings. This calculator helps you compare standard repayment with income-based repayment, showing potential savings and forgiveness scenarios.
The standard repayment uses the amortization formula. IBR is calculated as 10% of discretionary income (income above 150% of poverty guidelines).
IBR caps your monthly student loan payment at a percentage of your discretionary income. After 20-25 years of qualifying payments, any remaining balance may be forgiven.
Paying extra reduces total interest and speeds up payoff. However, if you qualify for loan forgiveness through IBR or PSLF, paying the minimum may be more beneficial.
IBR caps your monthly payment at 10-15% of your discretionary income (income above 150% of poverty guidelines). After 20-25 years of qualifying payments, any remaining balance may be forgiven.
Standard repayment has higher payments but less total interest. Income-driven repayment lowers monthly payments but may result in more interest over time. Choose based on your income and career trajectory.
Yes, you can always pay more than the minimum on federal and private student loans without penalty. Extra payments reduce principal faster and save interest.
Defaulting on student loans has serious consequences including wage garnishment, tax refund seizure, damaged credit, and loss of eligibility for future financial aid and deferment options.