This tool helps you estimate your student loan repayment options efficiently.
How to Use the Loan Calculator (FAFSA)
This calculator allows you to estimate your monthly loan payments and total interest paid over the life of a loan. Follow these simple steps:
- Enter the Principal Amount of your loan.
- Input the Annual Interest Rate of the loan.
- Specify the Loan Term in years.
- If your loan includes any Origination Fees, input the percentage of fees.
- Click on the Calculate button to view the results.
How the Results are Calculated
The calculator takes into account the principal amount, annual interest rate, loan term, and any origination fees to provide the following results:
- Monthly Payment: The amount you will need to pay every month.
- Total Interest Paid: The total interest you will pay over the life of the loan.
- Total Amount Paid: The total amount (principal + interest) paid over the loan term.
- Origination Fee Amount: The amount of origination fees based on the specified percentage.
Limitations
Note that this calculator is for estimation purposes only. Actual loan terms, interest rates, and fees may vary. Always consult with a financial advisor or loan officer for the most accurate information.
Use Cases for This Calculator
Estimate Your Monthly Payment
When considering federal student loans, estimating your monthly payment can help you plan your budget. By inputting the total loan amount, interest rate, and repayment term into the calculator, you can see how your monthly expenses will shift as you start your education.
Assess Your Total Loan Cost
Understanding the total cost of your loans is crucial for long-term financial planning. The calculator allows you to see not just your monthly payments but also how much you’ll end up paying over the life of the loan, including all interest accrued.
Compare Loan Options
With various federal loan types available, comparing them side by side can help you make informed decisions. Using the calculator, you can analyze different scenarios by changing loan amounts and interest rates to find the best fit for your educational goals.
Simulate Income-Driven Repayment Plans
If you’re considering income-driven repayment plans, the calculator can help simulate how different income levels will affect your payments. By adjusting your projected income and family size, you can better understand your obligations once you graduate.
Understand Loan Forgiveness Eligibility
If you’re aiming for loan forgiveness, it’s vital to grasp how long you need to repay your loans and under what conditions. The calculator lets you input various factors to determine how much you may have left to pay after qualifying for forgiveness programs.
Plan for Interest Accrual
Interest can significantly impact how much you pay over time, especially during periods of deferment or forbearance. By calculating how interest accrues on different loan amounts, you’ll gain insight into the long-term implications of delaying payments.
Determine Your Break-Even Point
Your break-even point refers to when the total amount you repay equals the original loan amount. Utilizing the calculator, you can pinpoint this point, assisting you in planning when to expect a return on your educational investment.
Explore Scholarships and Grants Impact
When scholarships or grants reduce your loan dependency, recalibrating your loan calculations is essential. By inputting potential financial aid into the calculator, you can understand how it affects your overall loan amount and future payments.
Evaluate Different Repayment Terms
Different repayment terms can lead to markedly different monthly payments and total interest paid. The calculator allows you to play with various terms, helping you weigh the pros and cons of shorter versus longer repayment periods.
Calculate Payment Impact on Lifestyle Choices
Your loan repayments can significantly influence your lifestyle choices post-graduation. By modeling different payment scenarios, you can anticipate how your loan obligations may affect your ability to manage other expenses like housing, travel, and savings.