How it works
Student loans are typically amortized over 10 years. This calculator assumes a fixed interest rate and level monthly payments.
Monthly payment uses the standard amortization formula.
Understanding student loan repayment
Federal student loans in the US typically use a standard 10-year repayment plan, though income-driven plans can extend the term and lower the monthly payment. Private loans vary by lender.
- Standard plan: fixed payment over 10 years
- Income-driven plans: payment based on income, longer term
- Private loans: terms set by the lender
How interest adds up
Interest accrues on your balance every month. If you defer payments, unpaid interest can capitalize — meaning it is added to the principal and starts earning interest itself. This is how balances grow faster than people expect.
Should you pay extra?
Paying extra toward the principal shortens the loan and reduces total interest. If you have high-interest private loans, paying extra usually beats keeping cash in savings.