Calculate your exact monthly student loan payment, total interest paid over the life of the loan, and your complete payoff timeline. Compare standard, extended, and income-based repayment options.
Frequently Asked Questions
How is student loan interest calculated?
Interest on federal student loans is calculated as a simple daily interest formula: Daily Interest = (Loan Balance × Annual Rate) / 365. Each day interest accrues and adds to your outstanding balance. Making payments on time prevents interest capitalization (interest added to principal).
What is the difference between subsidized and unsubsidized loans?
Subsidized loans: the government pays interest while you're enrolled at least half-time. Unsubsidized loans: interest accrues during school, deferment, and forbearance periods. If you don't pay accrued interest on unsubsidized loans, it capitalizes (adds to principal) when repayment begins, increasing your total debt.
What is income-driven repayment (IDR)?
IDR plans cap monthly payments at 5-20% of your discretionary income and forgive remaining balances after 10-25 years. Plans include SAVE, PAYE, IBR, and ICR. IDR is best when your debt exceeds your annual income. The forgiven amount may be taxable.