- On this page:
- How much will your loan really cost you?
- How your monthly payments affect how much you can borrow
- How will a Parent PLUS Loan fit into your family budget?
- Simple Student Loan Calculator
- Detailed Student Loan Calculator
- If you or your family have to borrow, avoid private lenders
- Consider how much you’ll earn in a job based on your major (but recognize this can change)
With all the news about the student loan crisis, and all the problems that can come with going into debt, it’s not surprising that many college-bound students and their families are concerned about how much is safe to borrow in student loans.
You can get a great education at many lower cost colleges, provided you put in the effort. But if you find you need to take out loans, it's important to know what those loans will cost you, and if you'll be able to afford them over time. Use the calculators below to get a good estimate of what your costs and payments might be.
Interest calculations reflect the current 6.53% rate for Federal Student Loans, up to the maximum $27,000 for 4 years. Any amounts over $27,000 are calculated at a representative private lender rate of 10%. Note: Interest rates are subject to change.
Interest calculations reflect the current 6.53% rate for Federal Student Loans, up to the maximum $27,000 for 4 years. Any amounts over $27,000 are calculated at a representative private lender rate of 10%. Note: Interest rates are subject to change.
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?
Interest calculations reflect the current 9.08% rate for Parent PLUS loans. Note: Interest rates are subject to change.
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.
Consider how much you’ll earn in a job based on your major (but recognize this can change)
Some colleges will even post potential salaries by major, and while this is helpful, it’s not foolproof. Some majors do provide a better starting salary, but others catch up fairly quickly. Also the job availability in different fields can change over time, sometimes rapidly.
For a long time, the conventional wisdom was “Your total loan amount for four years shouldn’t exceed more than you expect to make in your first job’s starting salary.” We used to give this advice too, but we no longer believe that it’s helpful.
First, many students change their idea about what their career will be, both during and after college. Many come into college not having any idea at all of what they intend to be.
Also, you might find a good job in a field different from the one you originally planned.
Finally, starting salaries are increasing, due to the number of jobs available vs the number of people looking, but that can always change. It doesn’t make sense to base the amount you borrow on something so variable.
As we have said elsewhere on this site, what you will take away from college depends not only on the quality of the school, but in the amount of work you put into the academic and social challenges. And because you may need more money for a graduate degree (which, by the way, is where much of the student debt comes from), one good strategy is to save your funds for graduate school.
