See your estimated monthly payment, total interest paid, and full repayment cost for any student loan amount.
Federal loan interest rates are set annually based on the May 10-year Treasury auction and are fixed for the life of each loan. For loans disbursed July 2026 through June 2027:
| Loan Type | Borrower | Rate (2026–27) |
|---|---|---|
| Direct Subsidized | Undergraduate | 6.52% |
| Direct Unsubsidized | Undergraduate | 6.52% |
| Direct Unsubsidized | Graduate/Professional | 8.07% |
| Direct PLUS | Parents & Graduate | 9.07% |
These rates apply to all new loans first disbursed on or after July 1, 2026 and before July 1, 2027 (the 2026–27 award year), based on the May 2026 10-year Treasury auction. Loans from prior years carry the rate set when they were disbursed — for example, loans disbursed in 2025–26 kept their 6.39% undergraduate rate for the life of the loan.
The standard 10-year plan sets equal monthly payments that pay off your loan by year 10. It minimizes total interest paid because you eliminate principal faster. Extended plans reduce monthly payment but significantly increase total interest.
For a $30,000 loan at 6.52%: standard 10-year payment is about $341/month, total cost roughly $40,900. On a 20-year plan, payment drops to $224/month — but total cost rises to about $53,800. That's roughly $12,900 extra in interest for a lower monthly payment.
On subsidized loans, the federal government pays the interest while you're enrolled at least half-time, during the grace period, and during deferment. On unsubsidized loans, interest accrues from the day the loan is disbursed — including while you're still in school.
If you have both types, always accept subsidized loans first. If you have unsubsidized loans, consider making interest-only payments while in school to prevent that interest from capitalizing into your principal when repayment begins.
Most federal loans have a 6-month grace period after graduation before repayment begins. During this period, unsubsidized loan interest still accrues. At the end of the grace period, any unpaid interest capitalizes — it's added to your principal, so you pay interest on that interest for the rest of the term.
On a $30,000 unsubsidized loan at 6.52%, 6 months of grace period adds roughly $980 to your principal before you make a single payment. Making interest-only payments during the grace period prevents this capitalization entirely.
Dependent undergraduates can borrow up to $5,500 freshman year, $6,500 sophomore year, and $7,500 junior and senior year — with limits on how much can be subsidized. Independent students and graduate students have higher limits. PLUS loans (for parents or graduate students) can cover up to the full COA minus other aid, but at a higher rate and with a credit check.
Your federal loans are managed by a loan servicer — a company contracted by the Department of Education to handle billing, payment processing, and repayment plan changes. You don't choose your servicer; it's assigned when your loan is disbursed or reassigned if the government changes contractors (this has happened several times in recent years, so check studentaid.gov if you're unsure who currently services your loan).
Your loan moves through several statuses over its life: in-school (while you're enrolled at least half-time, no payments due), grace period (typically 6 months after you graduate, leave school, or drop below half-time), and repayment (active monthly payments). Missing the transition from grace period to repayment is one of the most common ways borrowers accidentally become delinquent — mark your first payment due date as soon as you know it.
If your loan becomes delinquent (payment more than 90 days late) it's reported to credit bureaus and can affect your credit score. After 270 days of non-payment on most federal loans, the loan enters default, which can trigger wage garnishment, tax refund seizure, and loss of eligibility for further federal aid. If you're struggling to make a payment, contact your servicer before you miss one — income-driven repayment, deferment, and forbearance options exist specifically to prevent default, and servicers are generally far more willing to work with a borrower who reaches out proactively.
Should I pay off my student loan early? If your loan has a fixed rate above what you could earn investing that money elsewhere (after tax), paying it off early saves guaranteed interest. But check for prepayment penalties (rare on federal loans, occasionally present on private loans) and make sure you're not sacrificing an emergency fund to do it.
What happens if I miss a payment? Federal loans typically become delinquent immediately and default after 270 days of non-payment, which can damage your credit and trigger wage garnishment. Contact your loan servicer immediately if you're struggling — income-driven repayment or deferment options exist specifically to prevent default.
Does this calculator work for private student loans? Yes — enter your private loan's specific interest rate and term. Just note that private loans often have variable rates that can change over time, unlike the fixed federal rates shown above, so your actual payment may shift.
Can I change my repayment plan after I start paying? Yes, federal loan borrowers can switch repayment plans at any time by contacting their loan servicer, at no cost. Private loans are more restrictive — refinancing is usually the only way to change your terms.
Loan Repayment Calculator — compare plans and see the impact of extra payments.
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Federal vs Private Student Loans — which to borrow and repay first.