Student Loan Payoff Calculator
Find your monthly payment, total interest, and payoff date for any student loan balance.
Student loans are often the first significant debt people carry, and they're usually invisible in the early years when deferment keeps the bill away. Running this calculator on the full balance and standard 10-year term is the financial equivalent of turning on a light in a dark room. The number is worth seeing clearly.
On a $38,000 student loan at 6.5% over 10 years, you'll pay roughly $13,000 in interest, more than a third of the original balance. Refinancing to a lower rate or adding extra monthly payments can cut that significantly.
Federal vs private student loan considerations
Federal student loans come with income-driven repayment options, deferment and forbearance rights, and potential forgiveness programs (Public Service Loan Forgiveness, income-driven forgiveness after 20–25 years). Private loans have none of these protections. Before refinancing federal loans into a private loan for a lower rate, weigh carefully what federal benefits you'd be giving up permanently, the rate savings may not be worth the loss of income-driven repayment flexibility if your career or financial situation could change.
Income-driven repayment plans
Federal loans offer several income-driven repayment (IDR) plans that cap monthly payments at 5–10% of discretionary income. These lower payments can be invaluable in the early career years when income is lower. The tradeoff: lower payments mean slower principal payoff and more total interest. IDR plans extend the term to 20–25 years, at which point remaining balances are forgiven, though the forgiven amount may be taxable income in the year of forgiveness (unless covered by future legislation).
Refinancing strategy
Refinancing student loans replaces existing loans with a new private loan at a (hopefully) lower rate. This makes mathematical sense when: you have stable employment, you don't need federal protections, and the rate difference meaningfully reduces total interest. Use this calculator to compare total interest at your current rate vs a refinanced rate to see the actual dollar difference before deciding.
The extra payment effect
Additional payments on student loans go entirely to principal, shortening the payoff timeline and reducing total interest. Unlike mortgages, student loans typically have no prepayment penalties. Even an extra $50–100/month on a 10-year loan can save several thousand dollars in interest and cut 1–2 years off the payoff timeline.
Frequently asked questions
Should I pay off student loans or invest?
The mathematical answer depends on your loan rate vs expected investment returns. Federal loans at 4–5% probably warrant investing simultaneously, especially if you have an employer match. Loans at 7%+ tip the balance toward aggressive payoff first. The guaranteed return from eliminating 7% interest beats the expected (but uncertain) market return over most time horizons.
What is the grace period?
Most federal student loans have a 6-month grace period after graduation before payments are required. Interest accrues during this period on unsubsidized loans. Making voluntary payments during the grace period goes entirely to interest accrued, reducing the principal that compounds going forward.
Can student loans be discharged in bankruptcy?
Extremely difficult but not impossible. The standard requires demonstrating "undue hardship", a high legal threshold. In practice, fewer than 1% of borrowers who file bankruptcy attempt to discharge student loans, and success rates are low. A 2022 DOJ policy change made the process slightly more accessible, but student loan discharge in bankruptcy remains rare.