How the student loan payment is calculated
Each loan is paid back in equal monthly payments over the term. Every payment first covers the interest that built up on the balance that month, and the rest reduces the balance. The calculator works out a payment for each loan and adds them up, so you see the total you pay each month and when each loan ends.
The calculator charges a month of interest at the annual rate ÷ 12. Federal loan servicers charge interest daily: MOHELA, one of them, multiplies the balance by the rate and divides by 365.25 for each day. That is why a statement can differ from these numbers by a few cents or dollars.
Fixed federal repayment plans
The plan sets the term. With the example loans, $19,000 at 6.39% and $14,000 at 7.94%, $33,000 in total:
| Plan | Term | Monthly payment | Total interest |
|---|---|---|---|
| Standard | 10 years | $384.09 | $13,091 |
| Tiered Standard | 15 years | $297.67 | $20,581 |
| Extended, fixed | 25 years | $234.48 | $37,345 |
- Standard: fixed payments of at least $50 a month for up to 10 years, or up to 30 years for consolidation loans. Only for borrowers whose loans were all first disbursed before July 1, 2026.
- Tiered Standard: for borrowers with at least one loan first disbursed on or after July 1, 2026. Payments are fixed and at least $50 a month, and the longest term depends on your total outstanding principal when you enter the plan: 10 years under $25,000, 15 years from $25,000 to under $50,000, 20 years from $50,000 to under $100,000 and 25 years from $100,000. The example's $33,000 falls in the 15-year tier.
- Extended: fixed or graduated payments for up to 25 years. You need more than $30,000 in Direct Loans, all first disbursed before July 1, 2026. The calculator uses the fixed version.
- Custom: any term from 1 to 30 years, for a private student loan, a refinanced loan or a term you choose yourself.
The calculator does not model the Graduated plan, whose payments rise over time, or income-driven plans, which set the payment from your income. For loans first disbursed on or after July 1, 2026, the only income-driven plan is the Repayment Assistance Plan (RAP). For the federal plans, the $50 minimum applies when the currency is USD.
Federal student loan interest rates
All federal student loans first disbursed on or after July 1, 2006 have a fixed rate for the life of the loan. The rate for new loans changes once a year, on July 1. Your older loans keep the rate of the year they were first disbursed.
| Loan type | July 1, 2026 to June 30, 2027 | July 1, 2025 to June 30, 2026 |
|---|---|---|
| Direct Subsidized and Unsubsidized Loans, undergraduates | 6.52% | 6.39% |
| Direct Unsubsidized Loans, graduate and professional students | 8.07% | 7.94% |
| Direct PLUS Loans, parents and graduate or professional students | 9.07% | 8.94% |
The dates are first disbursement dates. Rates as listed on StudentAid.gov by the federal loan servicer Edfinancial, checked in October 2026. The example loans on this page use the 2025-26 rates.
Interest capitalization
Interest can build up while you are not making payments, for example during a deferment on an unsubsidized loan or during forbearance. If you do not pay it, it can be capitalized: added to your principal balance. From then on, interest is charged on the larger balance. When this happens depends on the loan and the situation; for Direct Loans, MOHELA lists the end of a deferment on an unsubsidized loan, and leaving the income-based repayment (IBR) plan or no longer qualifying for an income-based payment. Your servicer can tell you whether you have unpaid interest and when it would be capitalized.
Enter the unpaid interest for a loan and choose whether it is added to the balance or paid before repayment starts. With $20,000 at 6.39% over 10 years and $1,500 of unpaid interest, capitalizing it costs $534 more over the term than paying it first.
Paying extra
A federal loan payment is applied first to outstanding interest and then to principal, so extra money lowers the balance directly. The calculator sends the extra to the open loan with the highest rate, which cuts the most interest; when that loan is paid off, the extra moves to the next one. With the example loans on the Standard plan, $100 extra a month ends them 1 year and 7 months sooner and saves $3,711 in interest. To compare several debts at once, try the debt snowball planner; for a single loan, the loan calculator also solves for the rate or the term.
How to use the student loan calculator
- 1Add each loan with its balance and interest rate, from your servicer or StudentAid.gov account. Add unpaid interest if a loan has some.
- 2Pick the Standard 10-year plan, the Tiered Standard or Extended plan, or a custom term. Optionally add an extra monthly payment.
- 3Read the monthly payment, total interest and payoff date, which assumes your first payment is due this month. Check each loan in the table and the schedule, and copy the result, share a link or download the schedule as a CSV file.
Sources
Checked in October 2026, on the pages of federal loan servicers at StudentAid.gov.
- Edfinancial (StudentAid.gov): Interest rates for federal student loans, 2026-27 and 2025-26, fixed rates since July 1, 2006
- Edfinancial (StudentAid.gov): Repayment plan comparison (Standard, Tiered Standard, Extended, RAP)
- Edfinancial (StudentAid.gov): Tiered Standard plan balance tiers
- MOHELA (StudentAid.gov): Student loan interest, daily interest, capitalization and how payments are applied
Frequently asked questions
How is a student loan payment calculated?
Each loan is repaid in equal monthly payments over the term with the standard annuity formula: payment = balance × r ÷ (1 − (1 + r)^−n), where r is the annual rate ÷ 12 and n the number of months. With several loans, the calculator works out each payment and adds them up.
What is the standard repayment plan for federal student loans?
Fixed monthly payments of at least $50 for up to 10 years, or up to 30 years for consolidation loans. It is open to borrowers whose loans were all first disbursed before July 1, 2026. If you have a loan first disbursed on or after that date, the fixed plan is the Tiered Standard plan, with a term of 10 to 25 years depending on your balance.
Is it worth paying extra on student loans?
Usually, if you can afford it. A federal loan payment goes first to outstanding interest and then to principal, so every extra dollar lowers the balance that interest is charged on. In the example on this page, $100 extra a month saves $3,711 in interest and ends the loans 1 year and 7 months sooner.
What is interest capitalization?
Capitalization means unpaid interest is added to your principal balance. From then on, interest is charged on the larger balance, so you pay interest on interest. Paying the interest before it is capitalized avoids that. Enter unpaid interest for a loan and the calculator shows what capitalization costs.
Does this calculator cover income-driven repayment?
No. It computes fixed-term repayment: the same payment each month until the loans are paid off. Income-driven plans, such as the Repayment Assistance Plan (RAP), set the payment from your income, and their rules have changed recently. Check those plans on StudentAid.gov or with your loan servicer.
Do federal student loans have a fixed rate?
Yes. All federal student loans first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan. The rate for new loans is set once a year and applies to loans first disbursed from July 1 to June 30 of the next year.