Student Loan Payoff Calculator
See exactly how long it takes to pay off your loans and how much interest you'll pay. Compare your payment to the standard 10-year plan.
Loan Details
Results update instantly
10-yr standard: $388.57/mo
Payoff timeline
9 yr 8 mo
+$11.43/mo above standard → pays off faster
Total paid
$46,144
Total interest
$11,144
Principal paid
$35,000
Payment breakdown
On an income-driven plan? Compare all IDR plans (RAP, IBR, ICR) → This payoff calculator uses standard fixed-payment amortization only.
What the payoff timeline actually means
Most people look at their monthly payment and assume they understand their loan. The number that changes everything is the interest portion — and it's much larger in the first few years than most borrowers expect.
Your first payment is mostly interest — and that surprises almost everyone
Take a $35,000 loan at 6%. Your first monthly payment of $389 (10-year standard) looks straightforward. But break it down: $175 goes to interest, and only $214 reduces your actual balance. That's 45% of your payment doing nothing to shrink the loan in month one.
By month 60 (the halfway mark), you've paid over $23,000 — but your balance is still around $20,000. You're not "halfway done" financially, even though you're halfway through the term. This is why the total interest number in this calculator can feel shocking — it's real, and it compounds against you every single month you carry the balance.
Example: $35,000 at 6%, $389/month
Month 1 interest
$175
Month 1 principal
$214
Total interest (10 yr)
~$11,700
Extra payments disappear unless you tell your servicer exactly where to apply them
This is the most common mistake borrowers making extra payments don't know about. When you pay more than the minimum, most servicers — Nelnet, MOHELA, Aidvantage — will credit the overage as a prepayment of your next month's bill, not as extra principal reduction. Your balance barely moves, and your next due date just gets pushed forward.
To get the full benefit: when you make an extra payment (or pay more than the minimum), include a written note or use your servicer's online form to designate it as "apply to principal only". Every servicer is required to honor this under federal regulation. Without it, the interest math in this calculator won't match reality.
How to do it correctly
Log into your servicer portal → make a payment → look for "payment allocation" or "apply to specific loan" → select "current balance" not "next payment." If the option isn't there, call and follow up in writing.
An extra $50 a month is worth more than you think — especially early
People often feel like small extra payments aren't worth the effort. The math disagrees. On a $35,000 loan at 6%, adding just $50 per month to a $389 standard payment cuts your payoff from 10 years to about 8.5 years and saves roughly $1,850 in interest.
The reason is timing. Every dollar you put toward principal in year 1 or 2 eliminates 6% annual interest on that dollar for the remaining life of the loan. In year 9, the same dollar saves you much less because there's not much time left. This is why front-loading extra payments — even modest ones — punches above its weight compared to waiting until later.
$35k at 6% — impact of extra monthly payments
+$0/mo
10 yr 0 mo
+$50/mo
~8 yr 7 mo
saves ~$1,850
+$100/mo
~7 yr 5 mo
saves ~$3,200
+$200/mo
~5 yr 11 mo
saves ~$5,000
Refinancing federal loans to private can lower your rate — and cost you far more
Private lenders offer to refinance federal student loans at lower rates, sometimes 1–2% below your federal rate. The math on paper looks good. What's not on paper: the moment you refinance federal loans into a private loan, you permanently lose every federal borrower protection.
That means no income-driven repayment (IBR, PAYE, SAVE) if you lose your job or take a lower-paying role, no PSLF eligibility if you ever work for a government or nonprofit employer, no forbearance during financial hardship on federal terms, and no death or permanent disability discharge (private lenders vary widely on this). A 0.75% rate reduction on a $40,000 loan saves roughly $300/year in interest — but if you ever need IDR or PSLF, the cost of losing those options is measured in tens of thousands of dollars.
Refinancing makes sense if you're high-income, stable, in the private sector, and have no realistic path to forgiveness. It's a much harder call for anyone in healthcare, education, government, or early career where income trajectory is uncertain.
Federal loan rates
| Loan type | Typical rate |
|---|---|
| Undergraduate Direct (sub/unsub) | ~4–6% |
| Graduate Direct unsubsidized | ~6–8% |
| Direct PLUS (parent/grad) | ~7–8% |
| Private (variable) | ~5–15%+ |
Rates are set annually. Check your servicer or studentaid.gov for your exact rate.
Repayment plans
| Plan | Term | Best for |
|---|---|---|
| Standard 10-yr | 10 yr | Least interest |
| SAVE / IBR | 20–25 yr | Low income, forgiveness |
| PAYE | 20 yr | Income-driven |
| Extended | 25 yr | Lower payments |
| Graduated | 10 yr | Rising income |
This calculator models fixed-payment payoff only. For RAP vs IBR comparison: Student Loan RAP calculator.
2026–2027 federal loan rates are 6.52% for undergrads — and the One Big Beautiful Bill Act eliminated Grad PLUS
Federal student loan rates are reset every July 1 based on the May Treasury auction. The May 12, 2026 auction set the 10-year yield at 4.468%. Add the statutory margins and the 2026–27 rates are the highest in nearly two decades for new borrowers:
| Loan type | 2025–26 Rate | 2026–27 Rate | Change |
|---|---|---|---|
| Undergraduate Direct (sub/unsub) | 6.39% | 6.52% | +0.13% |
| Graduate Direct unsubsidized | 7.94% | 8.07% | +0.13% |
| Parent PLUS | 8.94% | 9.07% | +0.13% |
| Grad PLUS | 8.94% | Eliminated | July 1, 2026 |
What the One Big Beautiful Bill Act (OBBBA) changed — effective July 1, 2026
- • Grad PLUS eliminated for new borrowers — graduate non-professional students now capped at $20,500/year and $100,000 lifetime
- • Graduate professional students (medicine, law, etc.): capped at $50,000/year and $200,000 lifetime
- • Existing Grad PLUS borrowers: transition period of up to 3 years (lesser of 3 years or remaining time in program)
- • Origination fees remain: 1.057% on Direct loans, 4.228% on PLUS loans
Rates are fixed at disbursement — loans taken in different academic years keep their original rates. Existing loans are NOT affected by the new 2026–27 rates. Sources: Money.com (May 2026); CollegeHelpGuide.com (May 12, 2026 Treasury auction confirmed); NAICU OBBBA FAQ; studentaid.gov.
SAVE is gone: the 2026 IDR landscape and what SAVE borrowers must do before late September
The SAVE plan was vacated by federal court order on March 10, 2026 (Eastern District of Missouri) and eliminated by statute via the One Big Beautiful Bill Act. If you were in SAVE administrative forbearance, those months are not counting toward IDR or PSLF forgiveness — you must act.
| Plan | Status (2026) | PSLF eligible? | Notes |
|---|---|---|---|
| SAVE | Terminated | No (forbearance months excluded) | Vacated March 10, 2026 |
| RAP (new) | Launches July 1, 2026 | Yes | $10 min; waives unpaid interest; replaces SAVE |
| IBR | Open; permanent | Yes | For loans before July 1, 2026; kept permanently by OBBBA |
| PAYE | Open until July 1, 2028 | Yes | Sunsets permanently July 1, 2028 |
| ICR | Open until July 1, 2028 | Yes | Sunsets permanently July 1, 2028 |
If you are in SAVE administrative forbearance — action required
- Starting July 1, 2026, your servicer will send you a 90-day notice
- You have 90 days from that notice to choose IBR or RAP
- If you do nothing, you'll be auto-placed into Standard repayment
- Qualifying payment history from SAVE transfers to your new plan
- To enroll now or apply: studentaid.gov/idr
Sources: tateesq.com “Should You Switch IDR Plans in 2026?”; protectborrowers.org (May 2026); investing.plus (July 1, 2026 servicer notice timeline); Department of Education borrower communications.
If you qualify for PSLF, paying extra is the wrong strategy — and here's the math
Public Service Loan Forgiveness (PSLF) forgives your remaining balance tax-free after 120 qualifying monthly payments while working full-time for a qualifying employer. That makes extra payments actively counterproductive: every dollar you pay beyond the minimum reduces the amount forgiven — money you're spending on something that would have been wiped away tax-free.
Wrong strategy for PSLF borrowers
Pay extra to pay off faster → balance hits $0 before 10 years → no forgiveness → you paid off the full loan with interest out of pocket
Example: $80K balance, $30K projected forgiven
Extra $500/mo for 5 years → paid off in 6 yrs
Extra cost: $30,000 (vs. being forgiven)
Right strategy for PSLF borrowers
Enroll in IBR or RAP → pay the lowest qualifying monthly payment → make 120 payments → remaining balance forgiven tax-free
Same $80K, same $30K projected forgiven
Minimum IDR payments for 10 years
$30,000 forgiven tax-free at year 10
PSLF qualifying employers
✓ Qualifying
- Federal, state, local, tribal government
- 501(c)(3) nonprofits (any sector)
- AmeriCorps, Peace Corps
- Military service
✗ Not qualifying
- For-profit companies
- Non-501(c)(3) nonprofits (in most cases)
- Part-time employment (<30 hrs/wk)
- Labor unions, partisan political orgs
This calculator models standard fixed-payment payoff. If you're pursuing PSLF, use the Student Loan IDR calculator to model IDR payments. Check employer eligibility at studentaid.gov/pslf. Sources: studentaid.gov/publicservice; FedTools PSLF Federal Employees Guide 2026; TISLA (freestudentloanadvice.org).
Student loan interest tax deduction
You can deduct up to $2,500 of student loan interest per year (2024). The deduction is above-the-line — no itemizing needed. It phases out for single filers above $75,000 MAGI and married filing jointly above $155,000. Estimate your AGI →