Student Loan Calculator
Estimate your federal student loan payments for 2026. Calculate monthly payments, total interest, and view a full amortization schedule. Updated with the latest interest rates from the Department of Education.
2026 Federal Student Loan Rates
For the 2026-2027 academic year, the Department of Education has set the following federal student loan interest rates:
- Undergraduate (Direct Subsidized/Unsubsidized): 6.52%
- Graduate/Professional (Direct Unsubsidized): 8.07%
- Parent PLUS (Direct PLUS): 9.07%
These rates are fixed for the life of the loan and apply to loans first disbursed between July 1, 2026 and June 30, 2027. The maximum interest rates are 8.25% for undergraduate loans and 10.50% for PLUS loans.
How Student Loan Amortization Works
Student loans use simple interest amortization. Each monthly payment is divided between interest charges and principal reduction. Early in the loan, a larger portion goes toward interest; later, more goes toward principal.
Monthly Payment Formula:
M = P × [ r(1+r)n ] / [ (1+r)n - 1 ]
Where:
M = Monthly payment
P = Principal (loan amount)
r = Monthly interest rate (Annual rate ÷ 12)
n = Total number of payments (loan term in months)
Interest accrues during grace periods — typically 6-9 months after graduation before repayment begins. This calculator accounts for interest accrued during the grace period and adds it to the loan balance.
2026 Repayment Plan Changes
- Standard Plan: Fixed payments for 10 years (up to 30 years for consolidation loans).
- Tiered Standard Plan: New plan effective July 1, 2026 with terms of 10-25 years based on loan balance.
- Repayment Assistance Plan (RAP): New income-driven plan with payments at 1-10% of adjusted gross income.
The One Big Beautiful Bill Act (OBBBA) introduced these new repayment plans starting July 1, 2026, and phases out existing income-driven repayment plans.
❓ Student Loan Calculator FAQ
What is the student loan interest rate for 2026?
For the 2026-2027 academic year, federal student loan rates are: Undergraduate 6.52%, Graduate/Professional 8.07%, and Parent PLUS 9.07%.
How does the calculator handle grace periods?
During the grace period (typically 6-9 months after graduation), interest continues to accrue but payments are not required. This calculator adds the accrued interest to your principal before calculating your monthly payment.
What is the standard repayment plan for student loans?
The standard repayment plan has fixed monthly payments for up to 10 years (or 10-30 years for consolidation loans). For loans disbursed July 1, 2026 or later, a Tiered Standard Plan with 10-25 year terms applies based on your total loan balance.
Can I change my repayment plan after graduation?
Yes. You can switch between repayment plans at any time. However, note that starting July 1, 2026, new loans will be placed on the Tiered Standard Plan, and existing IDR plans like SAVE and PAYE are being phased out.
What is the difference between subsidized and unsubsidized loans?
Subsidized loans are based on financial need — the government pays the interest while you're in school and during grace periods. Unsubsidized loans are available to all students — you are responsible for all interest that accrues.
How does making extra payments affect my student loan?
Extra payments reduce your principal faster, which lowers the total interest you pay and can shorten your loan term. This calculator can show the impact of extra monthly payments.
What is the autopay discount for student loans?
Federal student loan servicers offer a 0.25% interest rate reduction for enrolling in automatic payments. Some loans may qualify for larger discounts under the new two-year incentive program.
How do I qualify for the Repayment Assistance Plan (RAP)?
RAP is a new income-driven plan effective July 1, 2026. Your monthly payment is based on your adjusted gross income and family size, ranging from 1% to 10% of your income.
What is the total cost of a $35,000 student loan?
For a graduate loan at 8.07% over 10 years, the total cost would be approximately $51,000 (including $16,000 in interest). Use this calculator to see the exact total for your specific loan amount, rate, and term.
Can I use this calculator for private student loans?
Yes. Select the "Custom Rate" option and enter your private loan's interest rate. Private loans typically have variable rates and different terms, but the amortization calculation works the same way.
What is the difference between interest rate and APR for student loans?
For federal student loans, the interest rate and APR are typically the same because there are no origination fees deducted from the loan amount. For private loans, APR includes fees and may be higher than the interest rate.
How does student loan interest compound?
Federal student loans use simple interest — interest is calculated on the principal balance only. Interest does not compound unless you capitalize it (add accrued interest to the principal) during grace periods or deferment.
What is the Public Service Loan Forgiveness (PSLF) program?
PSLF forgives the remaining balance on your Direct Loans after you've made 120 qualifying monthly payments while working full-time for a qualifying employer (government or non-profit organization).
How accurate is this student loan calculator?
This calculator provides accurate estimates based on the standard loan amortization formula and the latest federal rates. Actual payments may vary by servicer and your specific loan terms. Use this as a planning tool to understand your repayment options.
What happens if I miss a student loan payment?
Missing payments can lead to late fees, negative credit reporting, and eventually default. Federal loans offer deferment and forbearance options if you're having financial difficulty. Always contact your loan servicer if you're struggling to make payments.
When do I need to start repaying my student loans?
Federal student loans typically have a 6-month grace period after you graduate, leave school, or drop below half-time enrollment. During this period, payments are not required but interest may accrue on unsubsidized loans.
Can I consolidate my federal student loans?
Yes. Direct Consolidation Loans allow you to combine multiple federal loans into one loan with a single monthly payment. The interest rate is the weighted average of your existing loans, rounded up to the nearest 1/8 of 1%.