Student Loan Calculator

There are many different ways a student can borrow money for college, but the most common forms of student loans are private student loans and federal student loans.

Private student loans are those that an individual borrows from financial institutions, such as a bank or credit union. These loans are ideal for someone who would prefer not to borrow from the federal government or who’d rather borrow with their bank or credit union of choice.

Private student loans do come with a cost, though. They tend to have higher interest rates and are usually harder to get than federal student loans. Private student loans typically require a cosigner as well.

Federal student loans are loans that individuals borrow directly from the federal government. Federal student loans are a good option because they usually have lower interest rates and may not require a cosigner.

There are several different types of federal student loans, such as Direct Subsidized Loans, Parent PLUS Loans, and Direct Consolidation Loans. It is best to research each type of federal and/or private student loan to see which is best for your circumstances.

Student loan limits vary by type. With private student loans, financial institutions typically won’t lend you more than $120,000 if you are an undergraduate. Graduate students are capped at $300,000.

For federal student loans, it depends on the specific type of federal loan and what year of school you are in. The range is between $5,500 – $7,500 per year for dependent students and $9,500 – $12,500 per year for independent students.

The total limit is $31,000 for dependent undergraduate students and $57,500 for independent undergraduate students. The maximum for graduate students is $138,500.

Even though the government or bank will lend you the money, that doesn’t necessarily mean that you should borrow it. It is important to use the Student Loan calculator to see what the monthly payment will be and make sure that you can afford the payments once you graduate.

Student loans can be difficult to pay off for various reasons. One reason is due to capitalized interest. This means that interest may accrue before a student starts paying on the loan. This interest is then capitalized, or added to the principal balance, when the student starts repaying the loan.

Interest is then charged on top of that previous interest accrued, resulting in very high student loan balances that are difficult to pay off.

Another reason why student loans may be hard to pay off is due to income-driven repayment plans. This means that a student’s payment is proportional to their income. If their payment is not high enough to cover the monthly interest accruing, it will be difficult to pay down the principal loan balance.

No, student loans cannot be used for anything. Most lenders will tell the borrower what expenses student loans can be used for. Common expenses include tuition, room and board, books, supplies, transportation, and child care expenses.

There are a few common ways people avoid repaying student loans. There are various forgiveness plans for different career paths, such as the Public Service Loan Forgiveness program, that students can apply for upon starting their career after college.