Student Loan Calculator: Estimate Your Payments | national news
Brianna McGurran – Forbes Councilor
Student loans have become one of the primary means by which students and their families pay for their education. Almost two-thirds of public and private nonprofit college graduates in 2018 left school with student loan debt, according to the most recent data from the Institute for College Access & Success.
But while student loans can help make college affordable, the amount you borrow now will affect your budget for years after you graduate or drop out of school. Before signing a loan agreement, understand not only how much you plan to borrow while in college, but also how much you will owe per month in the future.
Enter the amount of your student loan, the interest rate and the length of your loan in months and years in the calculator below. You will then see your scheduled monthly payment and your full payment schedule over time. Remember to keep track of all of your student loans to get a complete picture of the amount owed. It may mean calculating multiple times.
Student loan faqs
What types of student loans are there?
The two types of student loans available are federal loans, provided by the federal government, and private student loans, provided by financial institutions such as banks and credit unions. Federal student loans generally have lower interest rates and more protections for consumers than private loans. It is therefore best to borrow these up to the maximum allowed, if necessary, before considering private loans.
How to apply for a student loan?
To get federal student loans, submit the Free Federal Student Aid Application, known as FAFSA. It is available on October 1 of each year for the following school year. Depending on your financial needs, the FAFSA might qualify you not only for student loans, but also for federal grants and work studies, as well as certain types of state and college financial aid. To get private loans, submit an application directly to the lender. Private loans require a credit check, unlike most federal loans.
How Much Should I Borrow in Student Loans?
Borrow as little as possible while making sure you have enough funds to complete your studies as planned. Some experts suggest that you don’t borrow more than you expect to earn your first year of full-time work after college. So, if the average starting salary in your field is $ 40,000, plan to take on no more than $ 40,000 in student loans altogether throughout your college education.
What will my repayment schedule be?
Your repayment term, or the time it takes to repay student loans, depends on the type of loan you have taken out and the repayment plan you choose. Federal student loans have a standard 10-year repayment term, but you can opt for 20 or 25 years if you choose an income-based repayment plan, which ties monthly payments to your income. Private loans often have terms of five, 10 or 15 years.
Can I get my loans canceled?
In certain circumstances, your student loans may be canceled before the end of your repayment period. For example, for federal loan borrowers, if you make 120 on-time loan repayments while working full-time for the government or a qualifying non-profit organization, you could get forgiveness on your loans through the forgiveness program. public service loans.