Student Loan Payoff Calculator
Student loans reward early action more than almost any other debt, because the balance is large and the term is long. Even a modest extra payment every month can remove years from the schedule.
Your student loan
Use one loan at a time. The highest rate first is usually optimal.
Federal undergraduate loans sit around 6%; graduate and PLUS loans run higher.
Tell your servicer to apply extra amounts to principal, not to next month's bill.
Extra payments versus the standard plan
On a $40,000 balance at 6.00% over 10 years, the standard payment is $444 and total interest is $13,290. Adding $100 a month ends the loan 2 years 4 months earlier and saves $3,303.
Refinancing federal loans into a private loan is permanent. You give up income-driven repayment, deferment and Public Service Loan Forgiveness. Only consider it if you are certain you will not need those protections.
Payoff schedule with extra payments
| Payment # | Payment | Extra | Interest | Principal | Balance |
|---|---|---|---|---|---|
| 1 | $544.08 | $100.00 | $200.00 | $244.08 | $39,656 |
| 2 | $544.08 | $100.00 | $198.28 | $245.80 | $39,310 |
| 3 | $544.08 | $100.00 | $196.55 | $247.53 | $38,963 |
| 4 | $544.08 | $100.00 | $194.81 | $249.27 | $38,613 |
| 5 | $544.08 | $100.00 | $193.07 | $251.02 | $38,262 |
| 6 | $544.08 | $100.00 | $191.31 | $252.77 | $37,910 |
| 7 | $544.08 | $100.00 | $189.55 | $254.53 | $37,555 |
| 8 | $544.08 | $100.00 | $187.77 | $256.31 | $37,199 |
| 9 | $544.08 | $100.00 | $185.99 | $258.09 | $36,841 |
| 10 | $544.08 | $100.00 | $184.20 | $259.88 | $36,481 |
| 11 | $544.08 | $100.00 | $182.40 | $261.68 | $36,119 |
| 12 | $544.08 | $100.00 | $180.60 | $263.49 | $35,756 |
Try the highest-rate loan first
Because federal and private student loans are separate accounts, you can direct extra money at whichever has the highest interest rate while keeping the minimums on the rest. This is the avalanche method and it minimizes total interest.
Understanding federal repayment plans
Standard repayment is a fixed 10-year schedule. Income-driven repayment plans stretch the term to 20 or 25 years and cap the payment at a percentage of discretionary income, which lowers the monthly cost but usually raises total interest.
Public Service Loan Forgiveness wipes out the remaining balance after 120 qualifying payments. For borrowers on that track, minimizing payments is often the right strategy. The calculator output matters less than the forgiveness timeline.
Refinancing, and when not to
Refinancing to a lower private rate can save real money, but it permanently converts federal loans into private ones. You would lose access to income-driven repayment, deferment, and forgiveness programs.
Do not refinance federal loans unless you are confident you will never need those protections.
Frequently asked questions
Should I pay extra on student loans or invest?
If your rate is above roughly 6 percent, paying extra is a guaranteed return that is hard to beat with bonds. Below 4 percent, investing the difference has historically come out ahead. Between the two, it depends on your risk tolerance.
Does paying extra reduce my required payment?
No. Extra payments shorten the term unless you specifically ask the servicer to re-amortize. Always tell your servicer to apply the extra amount to principal.
What happens to my loans if I go back to school?
Federal loans can be placed in in-school deferment, which pauses payments but interest continues to accrue on unsubsidized loans. Subsidized loans stop accruing interest during deferment.
Is student loan interest tax deductible?
You can deduct up to $2,500 of student loan interest per year if your modified adjusted gross income is below the phase-out threshold. It is an above-the-line deduction, so you do not have to itemize.
This calculator is an educational tool and does not constitute financial, tax or legal advice. Results are estimates based on the inputs and assumptions described above. Verify important figures with a qualified professional or the relevant government agency before acting on them.