Know your loan costs and payments before you borrow
If you're looking at colleges where the price would require you to take out a student loan, it's important to know how much that loan could cost you.
After all, whenever you borrow money, you have to pay interest on it. And the longer it takes you to pay your loan back, the more interest you pay. What's more, that interest portion doesn't go to your college. It's just money that goes to whoever provides the loan – money you could be using for other things.
So if you're thinking of getting a student loan, it's good to do the math first. We've even provided some good ways for you to do that. Just try out the different calculators below.
And while you're at it, think about whether you can get a quality education at a lower-priced school – one that might not require you to take out a loan at all, or at least a smaller amount in loans.
*Assumptions: Assumes a 10 year payback; interest rate of 6.53 for the first $27,000, then 10% for amounts above $27,000. Interest rates calculated on Bankrate student loan calculator. • Assumes no payments made while in school. • Assumes interest rates stay the same for all years of borrowing. • Does not account for interest accrued during school, so numbers are understated.
*Assumptions: Assumes a 10 year payback; interest rate of 6.53 for the first $27,000, then 10% for amounts above $27,000. Interest rates calculated on Bankrate student loan calculator. • Assumes no payments made while in school. • Assumes interest rates stay the same for all years of borrowing. • Does not account for interest accrued during school, so numbers are understated.
How will a Parent PLUS Loan fit into your family budget?
This calculator is for parents looking to support their child’s college education with a Parent PLUS Loan. Notice that at the current Parent PLUS interest rate of 9.08%, the amount you pay in interest for a 10 year loan is more than half the amount that goes to your child’s college. To learn more about these loans, visit this page: Parent PLUS college loans: How much is too much love?
*Assumptions: Assumes a 13 year payback; as payments start upon the student entering college. • Interest rate of 9.08%. Interest rates calculated on Bankrate student loan calculator. • Assumes interest rates stay the same for all years of borrowing.
Simple Student Loan Calculator
This calculator will help you estimate what a loan of any amount will cost you over time. But remember, each year that you're in college can mean another loan – and a different interest rate, too. So do the math for one year and four years.
Detailed Student Loan Calculator
This link takes you to a calculator on FinAid.org, a site run by recognized FAFSA expert, Mark Kantrowitz. Please note: the information you provide on the FinAid site may be used for marketing purposes.
