Student Loan Calculator

The Standard Repayment Plan is 10 years (120 months) with fixed monthly payments. It is the default plan assigned to federal student loans and results in the least total interest paid among all federal repayment options. For a $35,000 loan at 5.5%, this means payments of about $380/month and total interest of roughly $10,500 over the life of the loan.

Refinancing can save money if you have good credit (700+) and can get a lower rate than your current loans. However, refinancing federal loans into a private loan means losing access to income-driven repayment plans, Public Service Loan Forgiveness (PSLF), and federal forbearance options. Only refinance federal loans if you have stable income, a strong emergency fund, and no plans to use forgiveness programs.

You can deduct up to $2,500 of student loan interest per year on your federal tax return, even if you take the standard deduction. The deduction phases out at higher incomes (for 2025, $80K–$95K single, $165K–$195K married filing jointly). This effectively reduces your after-tax interest rate. For someone in the 22% tax bracket paying $2,000 in annual interest, the deduction saves about $440 per year.

Subsidized loans are available to undergraduate students with financial need — the government pays the interest while you are in school and during grace/deferment periods. Unsubsidized loans are available to any student regardless of need, but interest accrues from the day the loan is disbursed. If you do not pay the interest while in school, it capitalizes (gets added to your principal), increasing the total amount you owe.