See your estimated monthly payment, total interest paid, and full repayment cost for any student loan amount.
Federal loan interest rates are set annually by Congress and are fixed for the life of each loan. For loans disbursed July 2025 through June 2026:
| Loan Type | Borrower | Rate (2025–26) |
|---|---|---|
| Direct Subsidized | Undergraduate | 6.39% |
| Direct Unsubsidized | Undergraduate | 6.39% |
| Direct Unsubsidized | Graduate/Professional | 7.94% |
| Direct PLUS | Parents & Graduate | 8.94% |
These rates apply to all new loans in the 2025–26 award year. Loans from prior years carry the rate set when they were disbursed.
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 6.39%: standard 10-year payment is about $334/month, total cost roughly $40,100. On a 20-year plan, payment drops to $224/month — but total cost rises to about $53,700. That's $13,600 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 6.39%, 6 months of grace period adds roughly $960 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.
On unsubsidized loans, interest accrues from disbursement — including during your in-school period and the 6-month grace period after graduation. At the end of the grace period, any unpaid interest capitalizes: it gets added to your principal, and you then pay interest on that larger amount for the entire repayment period. On a $30,000 unsubsidized loan at 6.39%, capitalized grace-period interest adds roughly $960 to your balance before you make a single payment. Making interest-only payments during school or the grace period prevents this entirely.
If you have both loan types in your financial aid package, exhaust your subsidized loan allocation before accepting unsubsidized dollars. The government pays your interest on subsidized loans while you are enrolled at least half-time, during the grace period, and during deferment. On a $5,500 subsidized loan over a 4-year degree, the government pays roughly $1,400 in interest — free money that never accrues to your balance. This makes subsidized loans significantly cheaper than unsubsidized loans at the same stated interest rate.
Loan Repayment Calculator — compare plans and see the impact of extra payments.
Student Loan vs Salary Calculator — is your debt load manageable on your expected income?
How Much Student Loan Debt Is Too Much? — the 1x salary rule explained.
Federal vs Private Student Loans — which to borrow and repay first.