Student Loan Calculator

Federal student loan interest rates for 2024-2025 are set by Congress annually. Undergraduate Direct Subsidized and Unsubsidized Loans are 6.53% APR, graduate Direct Unsubsidized Loans are 8.08% APR, and Direct PLUS Loans (for parents and graduate students) are 9.08% APR. Rates for new loans change each July 1.

Subsidized loans are for undergraduates with financial need; the government pays the interest while you're enrolled at least half-time, during the grace period, and during deferment. Unsubsidized loans accrue interest from disbursement, so interest capitalizes (is added to principal) at repayment. For unsubsidized loans, paying interest while in school can significantly reduce total repayment cost.

The standard federal repayment plan spreads payments over 10 years in equal monthly installments. It results in the lowest total interest paid of all federal repayment plans. Income-driven repayment plans extend the term to 20-25 years with payments based on income and family size.

Refinancing can lower your interest rate if you have good credit and stable income. However, refinancing federal loans into a private loan permanently removes access to federal protections including income-driven repayment, Public Service Loan Forgiveness, and forbearance options. Weigh the interest savings against lost federal benefits carefully.

Most federal student loans have a six-month grace period after graduation, leaving school, or dropping below half-time enrollment, during which no payments are required. However, unsubsidized loans continue to accrue interest during this period. The accrued interest capitalizes (is added to principal) when repayment begins.