This Loan Payment Calculator computes an estimate of the size of your monthly loan payments and the annual salary required to manage them without too much financial difficulty. The calculator can be used with Federal education loans (Direct Subsidized, Unsubsidized, and PLUS) and most private student loans. You can also use the loan calculator to calculate auto loans or mortgage payments.
What Affects Your Loan Payments?
Various components can affect your loan payments, including credit scores, the availability of a co-signer, the loan amount, loan payoff dates, lender requirements, and more.
Below are a few of the most common factors that will affect your loan payment:
Loan Amount
The loan includes the overall amount needed for a semester or year. However, this amount will not be the final cost paid at the end of your loan term. Other factors, such as fees and loan interest rates, will make the amount paid higher than the initially requested loan total.
Interest Rate
An interest rate is the percentage of a borrower’s loan amount paid back in addition to the original loan amount. The higher the interest rate, the more money a borrower must pay the lender for a given loan size.
This loan calculator assumes that the interest rate remains constant throughout the loan’s life. The current 2024-25 fixed interest rate for Federal Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate students is 6.53%.
The Federal PLUS loan (a federal parent loan) has a fixed rate of 9.08%.
Repayment Period (Loan Term)
The calculator also assumes that the loan will be repaid in equal monthly installments through standard loan amortization (i.e., standard or extended loan repayment).
The results will not be accurate for some alternate repayment plans, such as graduated repayment and income-contingent repayment.
Type of Loan
Some educational loans have a minimum monthly payment. Please enter the appropriate figure ($50 for Direct Subsidized, Unsubsidized, and PLUS Loans) in the minimum payment field. Enter a higher figure to see how much money you can save by paying off your debt faster. It will also show you how long it will take to pay off the loan at the higher monthly payment.
Types of Student Loans:
- Federal Subsidized Student Loans
Subsidized loans are given to students who demonstrate financial aid need. The government pays the loan interest while a student is in school.
- Federal Unsubsidized Student Loans
Unsubsidized loans are available to all students, regardless of financial need. Students with unsubsidized loans are responsible for paying all interest on their loans.
- Federal Direct PLUS Loans or Parent PLUS Loans
PLUS Loans are offered to biological, adoptive parent, or stepparent of a dependent undergraduate student.
- Private Student Loans
A variety of private lenders offer student loans.
Loan Fees
Loan fees, sometimes referred to as origination fees, are a small percentage of the overall loan cost. The lender establishes these fees, which serve as the processing charge to fulfill loans on the lender’s side.
Federal subsidized and unsubsidized student loans have an origination fee of 1.057%. Direct PLUS loans have an origination fee of 4.228%.
Loan fees adjust the initial loan balance, so the borrower nets the same amount after deducting the fees.
Comparing Loans
Comparing your student loan options is not just a good idea, it’s the best way to save money on the cost of borrowing. Before you borrow, project what your future payments may look like by using a loan payment calculator. This will give you a clear picture of your financial commitments.
Borrowers should research loan interest rates, terms, and conditions to pick the student loan that works best for them, ensuring they make an informed decision.
