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Student loan calculator

Student loan calculator online in 2022: assessment of the best student loan in the USA

The best student loan calculator
Student loan amount
i

The amount you want to receive

USD
USD
10000 $
500000 $
Student loan term
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Specify the desired length of the student loan

years
months
3
20
Interest rate
i

Choose the interest rate on the loan

2 %
20 %
Type of payments
i

Specify the type of payment for calculating

Fill out an application for a student loan online!
Fill out an application for a student loan online!

Take advantage of our student loan selection system with a free credit rating check!

What is a student loan?

A student loan is money that the government or private lenders provide to borrowers who will enter college or university. Such loans help students pay for tuition costs, living expenses, books, materials, student health insurance, and other university or college fees. Borrowers always have to pay back their loans along with interest.

Major types of student loans

Students can choose from federal and private student loans. The government extends federal student loans, while different financial institutions, such as banks, credit unions, and private lending companies, offer private student loans. These two major types of loans also have subtypes.

For example, federal student loans are divided into:

Both subsidized and unsubsidized loans have a lot of pros, such as low-interest rates, flexible repayment options, loan forbearance, etc.

The cost of loans and credit scores to determine borrowers' eligibility are the main differences between federal and private student loans.

If you are an undergraduate student and want to apply for a federal student loan, you don't have to worry about a credit check. But if you are a graduate student, you should know that a credit check is required, and if the results of such a check are unsatisfactory, you probably won't have the right to apply for a loan and obtain it.

Federal student loans require your credit check, and your credit score must be at least 640 points. But you should always pay attention to the terms and conditions of the particular loan because sometimes borrowers need to have higher credit scores to apply for loans.

There are some other differences between federal and private loans. For example, the government always offers federal loans to students with fixed interest rates. At the same time, private lenders provide loans with both variable and fixed interest rates, and usually, these rates are higher.

Unlike some federal loans, private student loans are never subsidized, and it means that the borrowers have to pay all the interest if they obtain financial aid from private lenders. But if you are an undergraduate student who needs financial assistance from the government, you can be sure that the government will pay your interest until you graduate.

If you use federal student loans, you will benefit from flexible repayment options and a loan forgiveness program. Private loans don't provide for a loan forgiveness program, and also they have limited repayment options.

The borrowers don't need to repay federal loans until they graduate, but they have to pay back private loans while studying.

Why you need a student loan calculator

A student loan calculator can help future borrowers determine and choose the best student loan repayment strategy.

When you specify some basic information about your future loan, the student loan calculator will show you the results, such as your monthly payments in the future, the term of your loan, and the interest you will have to pay. This calculator will help you consider different student loans and choose the best one.

How to Use a Student Loan Calculator?

If you want to use the student loan calculator, you have to prepare some necessary information about your loan. First, you have to know your loan amount. Federal and private student loans have different loan amounts, and your loan amount usually depends on whether you're a graduate or undergraduate student.

If you choose a federal student loan, consider loan amounts for graduate and undergraduate students. For example, direct subsidized loans for graduate students are up to $20,500 annually. And the amount of direct subsidized loans for undergraduate students is $5,500. The amount of direct unsubsidized loans for an undergraduate student is up to $12,500.

Private student loan amounts are usually variable and depend on the lender. Private lenders set their own repayment terms, interest rates, annual borrowing limits, etc. Some lenders provide loans up to $150,000 and even more, but it depends on the student's degree.

Before you decide to obtain financial aid from private lenders, you should consider details about federal student loan limits.

The following information you need to know to use a student loan calculator is the loan term. The loan term is the number of months the borrowers have to repay their loans. The default loan term of federal student loans under a standard repayment plan is 10 years. But if you choose loans that are under an alternative payment plan, your loan term will vary from 10 to 25 years. The loan terms of private loans are usually set by lenders and vary from 5 to 20 years.

If the students have short loan terms, they will save their money on interest charges during the repayment periods, but their monthly payments will be large. And if the students have the long terms for their loans, their monthly payment will be low. Long terms of student loans will accumulate more interest charges over time. So, the borrowers make sure they know all details about the loan terms, and then they will choose the right way to receive the financial aid.

Also, before using a student loan calculator, you need to learn some information about interest rates. Usually, the interest rates depend on your financial situation and the particular lender. For example, all borrowers who apply for federal student loans will have the same interest rates. Their incomes or credit scores don't matter. But if they request financial assistance from private lenders, they will face credit checks. As a result, their interest rates will be set according to their creditworthiness. Borrowers will have low-interest rates only if their credit scores are high enough.

Students need to take into consideration the fact that the lowest interest rates, which are presented on the lenders' websites, may not be available to them. The borrowers need to use the prequalification features to determine what interest rates they will receive. Prequalification allows them to enter the key information about themselves and the desired loan option. Instead, the borrowers will receive data about offered terms and rates of the loan.

What to consider when calculating student loan interest

When you calculate your student loan interest, you need to take into consideration the following things:

How to compare loans using a student loan calculator

If you decide to choose the best loan using a student loan payment calculator, you have to pay special attention to your student loan amount, the interest rate, and the term of your loan. After you need to enter this information in the online calculator, push the "Calculate" button, and you will see the information about your monthly student loan payments. Then you can choose the best option.

Does a student loan hurt your credit score?

Yes, student loan affect a borrower's credit score. Their credit report will contain a student loan amount and a history of payments. If a borrower makes monthly loan payments on time, their credit score will be good. But if they miss payment deadlines, student loan will hurt their credit score.

Can student loans affect buying a house?

Yes, sometimes student loans affect buying a house. This occurs because student loans have an impact on borrowers' finances in several ways, such as credit score, debt-to-income ratio, and savings potential. All of these are taken into account while buying a house.

Do student loans ever go away?

After seven years, negative information about student loans may disappear from borrowers' credit reports. But the only way to get rid of the student loans themselves is to repay them.

What happens if you never pay for student loans?

If you don't make your monthly payments, you will face short-term consequences such as late fees, withheld tax refund, wage garnishment, or loan-term consequences such as default, lost eligibility for future aid, credit score drop, and potential lawsuits.