Student Loan Payment Calculator

Student Loan Calculator: How Long Will It Take to Pay Off?

It’s no secret that getting a degree has grown more expensive over the past several years. For many students, the only way to stay atop this rising tide has been by taking on an increasing amount of student loans. The issue with this tends to mean that students are taking longer than ever to repay these loans, and taking a financial hit for many years as they try to do so. The amount you repay and how long it takes you will depend on several factors. By utilizing a student loan calculator, you can estimate what you might need to repay and how long it might take.

How Student Loans Work

Student loans are financial aid designed to help students pay for higher education expenses. More than 42.7 million Americans have some type of student loan that they have not repaid, and collectively they owe more than $1.64 trillion. These loans are typically used to cover tuition, books, supplies, housing and other education-related costs. 

Unlike scholarships or grants, student loans must be repaid with interest, typically after graduation or when the student drops below half-time enrollment. The type of loan you borrow can change when and how much you pay, as there are both federal and private student loans to consider. 

The government issues federal student loans and generally offers more favorable terms, including fixed interest rates, income-driven repayment plans and potential loan forgiveness. Private student loans come from banks, credit unions or other institutional lenders and may have variable interest rates based on the borrower's credit score and often require a cosigner for students with limited credit history. Private student loans often come with fewer borrower protections and higher interest rates. 

Understanding the various factors that impact a student loan can help borrowers make informed decisions about their education financing. These elements influence how much you'll pay over time and the flexibility you'll have in repayment.

• Interest rate: The interest rate on your student loan directly affects the total amount you'll repay over time. Federal loans typically offer fixed rates set by Congress, while private loan rates vary based on your credit score and market conditions, potentially adding thousands to your total repayment amount. Refinancing is also available for private loans, which could lower your interest rates when you have more income or a better credit history down the line. 
• Loan term: The length of your repayment period significantly impacts your monthly payment amount and total interest paid, which is pretty standard on a private loan. Federal loans tend to have 10-year or 20-year repayment options, but if you opt for a repayment program that differs from the original loan terms, then this could change entirely. 
• Repayment plan options: Repayment doesn’t begin on student loans until after you’ve graduated. The flexibility of available repayment plans affects how manageable your loan payments will be. Federal loans offer income-driven repayment plans that adjust your monthly payment based on your income and family size, providing relief during financial hardships.
• Loan forgiveness eligibility: Certain careers and repayment plans may qualify you for partial or complete loan forgiveness for federal loans. Public service workers, teachers in high-need areas and those who make consistent payments on income-driven plans may have remaining balances forgiven after meeting specific requirements.
• Loan fees: Another thing that can add to your total amount borrowed is loan fees. Even Federal student loans typically have at least an origination fee associated with what you borrow. While these fees are limited by Congress for federal loans, you may encounter even more fees with private loans. This is important to pay attention to before agreeing to borrow the money. 

One final aspect of your student loans that can impact what you pay over time is whether your federal loans are subsidized or unsubsidized while you’re in school. A subsidized loan means that your interest will be paid while you’re in school and your account won’t start accumulating that interest until you graduate. Unsubsidized loans start to accumulate interest immediately, even before you are in repayment.  

How Long Will It Take to Pay Off Your Student Loans?

The average student loan borrower takes around 20 years to pay off their student debt. The amount of time it will take you to pay off your loans depends on all of the factors we discussed above, such as the type of loans you borrow, your interest rate and how much you repay over time. Plus, the final amount that you borrowed and how quickly you start paying more than the interest on your loans will determine the speed at which you pay down the balance. 

To determine how long it will take to pay off your student loans, start by gathering information about your current balance, interest rate, and monthly payment amount. Online student loan calculators can help you estimate your payoff date based on these variables. Remember that making only minimum payments will result in the maximum repayment period, while additional payments can significantly reduce both your timeline and the total interest you pay.

Higher interest rates can substantially extend your repayment period. Even a difference of one or two percentage points can add years to your payoff timeline and thousands to your total cost, in some situations. Remember, Federal loans typically have fixed rates, providing payment stability, while private loans may have variable rates that fluctuate with market conditions, potentially changing your payoff trajectory over time.

If you're looking to shorten how long it will take to pay off your student loans, consider making extra payments whenever possible so that you can pay down the principal. Even small additional amounts applied directly to the principal can make a meaningful difference. Creating a budget that prioritizes debt repayment, refinancing to a lower interest rate if you qualify or using windfalls like tax refunds or bonuses can all help accelerate your journey to becoming debt-free.

Types of Student Loans

Before getting into the different types of available loan programs, let’s do a quick refresher on how exactly student loans work. Like any type of loan (auto loan, credit card, mortgage), student loans cost some small amount to take out (an origination fee) and they require interest and principal payments thereafter. Principal payments go toward paying back what you’ve borrowed, and interest payments consist of some agreed-upon percentage of the amount you still owe. Typically, if you miss payments, the interest you would have had to pay is added to your total debt.

The federal government helps students pay for college by offering several loan programs with more favorable terms than most private loan options. Federal student loans are unique in that, while you are a student, your payments are deferred—that is, put off until later. Some types of Federal loans are “subsidized” and do not accumulate interest payments during the deferment period.

Stafford Loans

Stafford loans are the federal government’s primary student loan option for undergraduates. They offer a low origination fee (about 1% of the loan), the lowest interest rates possible (6.53% for the 2024-2025 academic year), and, unlike auto loans or other forms of debt, the interest rate does not depend on the borrower’s credit score or income. Every student who receives a Stafford loan pays the same rate.

There are two different types of Stafford loans: subsidized and unsubsidized. Subsidized Stafford loans are available only to students with financial need. All told, subsidized Stafford loans are the best student loan deal available, but eligible undergraduate students can only take out a total of $23,000 in subsidized loans, and no more than $3,500 in their freshman year, $4,500 in their sophomore year and $5,500 junior year and beyond.

Along with the specific ceiling of $23,000 for subsidized Stafford loans, there is a limit on the cumulative total of unsubsidized and subsidized combined that any one student can take out. Undergraduate students who are dependent on their parents for financial support can take out a maximum of $31,000 in Stafford loans and students who are financially independent can take out up to $57,500 in Stafford loans. So, for a student who has already maxed out her amount of subsidized loans, she could take out an additional $8,000 to $34,500 in unsubsidized loans, depending on whether or not she is a dependent.

PLUS Loans 

Graduate and professional students can no longer get subsidized loans. Since 2012, they have onlybeen eligible for unsubsidized options. They can take out $20,500 each year for a total of $138,500. It’s important to note that this total includes loans that were taken out for undergraduate study as well. The rate for unsubsidized graduate loans for the 2024-2025 academic year is 8.08%.

For these students, the federal government offers a separate option, called PLUS Loans. There is no borrowing limit for PLUS loans—they can be used to pay the full cost of attendance, minus any other financial aid received, however, they have a higher interest rate and origination fee than Stafford Loans. 

For the academic year 2024-2025, the interest rate for PLUS loans was 9.08% and the origination fee was about 4.3%. They also require a credit check, so students with bad credit may not be eligible. PLUS loans can also be used by parents of undergraduate students to help pay for a son or daughter’s education.

Private Loans

Once all federal loan options have been exhausted, students can turn to private loans for any remaining funding. Private loans generally offer far less favorable terms than federal loans and can be harder to obtain. They can have variable interest rates, sometimes higher than 8-10%. 

Additionally, the interest rate and your ability to receive private student loans can depend on your credit record. While some do provide for the deferment of payments while you are in school, many do not. Private loans do not make sense for everybody, but for some students they can be helpful to bridge the gap between federal loans and the cost of college.

These loans are typically offered by financial institutions, like banks or professional lenders. They not only come with higher fees and interest rates, which can dramatically increase how much you repay over time, but they also can have less repayment flexibility. For example, a Stafford loan might let you skip payments when you lose your job in the future while private loans will expect you to make the payment every month without fail. 

Perkins Loans

Perkins Loans were a type of federal student loan program designed specifically for undergraduate and graduate students with exceptional financial need. Unlike other federal loan programs, Perkins Loans offered some of the most favorable terms available to students, including a fixed 5% interest rate and a nine-month grace period after graduation before repayment began. These loans were administered directly by participating educational institutions, which contributed a portion of the loan funding alongside federal dollars.

The Perkins Loan Program ended in 2017, but borrowers still have to pay their loans back. Payback periods lasted 10 years at a 5% interest rate. Today, borrowers looking for U.S. government loans would apply for Stafford and PLUS loans.

Student Loan Repayment Programs

Once you enter repayment on your student loans, there are numerous repayment options available to those who have borrowed federal loans. These programs are designed to make monthly payments more manageable based on income, career choice, or other qualifying factors. Federal loans typically provide more flexible repayment options than private loans, including income-driven repayment plans that cap monthly payments at a percentage of discretionary income.

Some popular programs that are available to many people can adjust your monthly payment based on your income and family size. Some of your plan options include Income-Based Repayment (IBR), Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE). These programs vary but typically provide a way for you to cap payments at a small percentage of your discretionary income. After making consistent payments for 20-25 years, any remaining balance might be forgiven, though the forgiven amount could be taxable.

For those working in government or non-profit sectors, Public Service Loan Forgiveness offers a valuable opportunity. After making 120 qualifying monthly payments while working full-time for an eligible employer, your remaining federal student loan balance can be forgiven tax-free. This program particularly benefits those in education, healthcare, public safety and other public service careers.

Regardless of what type of repayment program you might be interested in, consider talking to a financial advisor or student loan expert who can help you determine the right repayment program for your situation.

How to Reduce The Amount of Student Loans You Borrow

The key to reducing how much you have to repay in student loans comes down to finding ways to borrow less. There are ways to limit the amount you’re borrowing while you’re in school so that you end up getting charged less interest for your student loans and, ultimately, spending less time after school repaying your debt. 

Creating a comprehensive budget is your first line of defense against excessive borrowing. Take time to calculate all your educational expenses, including tuition, books, housing and daily living costs. Then identify all possible income sources such as savings, family contributions, and part-time work. This clear financial picture helps you determine exactly how much you need to borrow, preventing the common mistake of taking out more loans than necessary.

Free money should always be your first choice for education funding. Scholarships and grants don't require repayment, making them invaluable resources for reducing student loan debt. Dedicate time each week to searching and applying for opportunities that match your background, interests, and academic achievements.

Limiting how quickly you go through school can help you pay less each year. Part-time employment during school terms and full-time work during breaks can provide immediate income to cover expenses that might otherwise require loans. Many universities offer work-study programs that provide flexible schedules designed around your classes. Beyond reducing how much you need to borrow, work experience during college also strengthens your resume for post-graduation employment.

Your lifestyle choices during college directly affect how much you'll need to borrow. Choosing affordable housing, preparing meals at home, using public transportation and buying used textbooks can save thousands each semester. Remember that every dollar you don't spend is a dollar you don't have to borrow and later repay with interest.

Applying for Financial Aid

The process for obtaining federal financial aid is relatively easy, as long as you know what you’re doing and have the right information when you apply. You fill out a single form, the Free Application for Federal Student Aid (FAFSA) and send it to your school’s financial aid office. Then they do the rest. 

The FAFSA is your single gateway to Stafford and PLUS loans. Many colleges also use it to determine your eligibility for scholarships and other options offered by your state or school, so you could qualify for even more financial aid. You’ll need information such as basic identification, all financial documents that show proof of income for you and possibly your parents, any dependent information and make sure you know what schools you’re applying to. 

There is no reason not to complete a FAFSA. Many students believe they won’t qualify for financial aid because their parents make too much money, but in reality, the formula to determine eligibility considers many factors besides income. By the same token, grades and age are not considered in determining eligibility for most types of federal financial aid, so you won’t be disqualified on account of a low GPA.

Applying for private student loans has a similar process to applying for a loan or credit line from a financial institution. You can apply directly on the lender’s website or your school might be able to connect you with lenders who regularly work with students at their institution. You may want to talk to your financial aid office before applying for a private student loan to make sure you’re getting the best deal for you. 

What To Do When You Graduate

When you graduate, the first step in managing your student loans is understanding exactly what you owe. Take time to gather all your loan documents, noting interest rates, loan servicers, and repayment terms. Many graduates are surprised to discover they have multiple loans with different terms. Creating a comprehensive list of all your obligations provides clarity and helps you develop an effective repayment strategy.

Most federal student loans offer a six-month grace period after graduation before payments become due. This valuable window gives you time to secure employment and establish financial stability before repayment begins. However, don't mistake this grace period for a free pass to ignore your loans. Use this time strategically to understand repayment options and potentially make early payments to reduce accruing interest, especially on unsubsidized loans.

Federal student loans offer various repayment options beyond the standard 10-year plan. Income-driven repayment plans can adjust your monthly payments based on your income and family size, making payments more manageable during early career stages. Graduated plans start with lower payments that increase over time, while extended plans stretch payments over a longer period. Evaluating these options carefully can help align your student loan payments with your current financial situation.

Setting up automatic payments as soon as you graduate not only ensures you never miss a due date but also often qualifies you for interest rate reductions. Creating a budget that prioritizes loan payments helps prevent financial strain and builds a positive credit history. Remember that how you handle student loans when you graduate can significantly impact your financial future for years to come.

Tips for Financial Planning

• A financial advisor can also help you create a financial plan for your education needs and goals. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Do you already have student loans and you feel like your interest rates are too high? You may want to consider refinancing your student loans, especially if the market is currently offering lower rates than normal.