Student Loan Calculator

Here's the secret banks hate: Pay more than the minimum. Even $50 extra a month goes 100% toward principal (not interest). On that $30k loan, an extra $50/month saves you $2,017 in interest and gets you debt-free 14 months early. Find $100/month? You save $3,622 and finish 27 months early. Most people can find this by cutting 2-3 subscriptions they forgot about.

— David Chen, CFA | "I paid off $37k in loans in 3 years instead of 10. The trick? I treated my student loan like it was on fire. Because financially, it was."

1. Ignoring the Grace Period: You get 6 months after graduation before payments start. Interest is STILL piling up (especially on unsubsidized loans). If you can, pay at least the interest during grace so your balance doesn't grow before you even start.
2. Choosing the Extended Repayment Plan: "Lower monthly payment!" sounds great. But paying $217/mo for 25 years instead of $325/mo for 10 years means you pay $65,100 total vs $39,000. You pay $26,100 MORE for the "convenience" of a lower payment.
3. Refinancing Federal Loans (Usually): Refinancing federal to private means you lose income-driven repayment, forbearance options, and PSLF eligibility. Only do this if you have high income + stable job + no plans for forgiveness.
4. Not Knowing Your Loan Type: Subsidized vs unsubsidized? Federal vs private? This matters for repayment strategy. Federal = flexible, private = refinance ASAP if rate is high.

Scenario: You have $30,000 in student loans at 5.5% interest.

Option 1 (Minimum Only): $325/month for 10 years → Total paid: $39,000 → Interest: $9,000

Option 2 (+ $50/month): $375/month for 8.8 years → Total paid: $36,983 → Interest: $6,983 → Save $2,017

Option 3 (+ $100/month): $425/month for 7.7 years → Total paid: $35,378 → Interest: $5,378 → Save $3,622

Option 4 (Extended 25 years): $217/month for 25 years → Total paid: $65,100 → Interest: $35,100 → Lose $26,100

✅ Winner: Option 3. For an extra $100/month (the cost of 2-3 streaming services), you save $3,622 and get debt-free 2.3 years early.

Should I pay off student loans or invest?

If your loan interest rate is above 6-7%, pay it off first. Why? Paying off a 7% loan is a guaranteed 7% return. The stock market averages ~10%, but it's not guaranteed and it's volatile. Psychology matters too—being debt-free gives you freedom. Exception: If your employer matches 401(k) contributions, contribute enough to get the full match (that's free money) THEN attack your loans.

Can I deduct student loan interest on my taxes?

Yes, up to $2,500 per year (2025 tax year). To qualify: You must be legally obligated to pay the interest, you can't be claimed as a dependent, your filing status can't be "married filing separately", and your MAGI (Modified Adjusted Gross Income) must be below the phase-out limit ($75k single, $155k married filing jointly). Even if you don't itemize deductions, you can still claim this as an "above-the-line" deduction.

What's the difference between subsidized and unsubsidized federal loans?

Subsidized (better): The government pays your interest while you're in school (at least half-time) and during the 6-month grace period. Only available based on financial need. Max $23,000 total. Unsubsidized (more common): Interest starts accruing immediately, even while you're in school. If you don't pay it, it capitalizes when repayment starts, making your balance bigger. Pro tip: If you can, pay at least the interest on unsubsidized loans while still in school.

Should I refinance my federal student loans?

Usually NO—refinancing federal loans into private loans means you lose federal protections: income-driven repayment plans, deferment/forbearance options, and potential forgiveness (PSLF). Only consider refinancing if: You have a high-paying stable job, your federal rate is above 6-7%, you can get a significantly lower private rate (3-4%+), and you don't plan to use income-driven repayment or pursue loan forgiveness. Private loans CAN be refinanced though—if you have good credit, refinancing private loans from 10% to 5% is free money.