Student Loan Repayment Calculator
Ready to embark on the life-changing experience that is college, yet daunted by the prospect of a student loan? Do you understand the basics of federal student loans and private student loans, yet are unsure as to how and when it should be repaid? Or, are you about to graduate and are considering repayment schemes. This student loan repayment calculator will hopefully shed new light on such queries. A small amount of knowledge is required before using the calculator, such as the amount being borrowed and at what rate. It is also good to have a fair estimation of your repaying power will be upon graduating: how much you expect to earn per month, and how much of that will be used to pay back your student loan.
How to use it
To use the student loan repayment calculator, begin by entering the balance of your student loan into the first text box on the calculator. Follow this by entering the interest rate that will be applied to the loan underneath. Finally, consider how much you will be able to pay per month. This can be entered as a desired monthly payment, or calculated in the amount of months you expect it will take to be able to pay off the loan. Once these figures have been entered, click on “Calculate”. The resulting screen will give an output of the amount of months it will take to pay off the loan given the values entered.
To make the student loan repayment calculator easier to understand, we can go through an example and enter these details into the boxes. Let’s imagine for a moment that the student loan amount is around $30,000, so somewhat above the average. The interest rate on a loan such as this could be as high as 5%, so let’s enter that figure below. For the monthly payment, let’s say that we can dedicate around $300 of expendable income so as to pay back the loan – so, 1% of the loan’s total. If we enter these figures into the student loan repayment calculator, it shows us that the loan will take a total of 130 months, or almost 11 years to pay back.