Guide
Estimate student loan monthly payments, total interest, and payoff timeline. Compare standard, extended, and income-driven repayment plans with extra payment scenarios.
Federal vs Private Student Loans
Federal loans offer income-driven repayment, forgiveness programs, and deferment options private loans lack. Always max federal aid before considering private lenders.
Private loans may offer lower rates for borrowers with excellent credit and stable income but lack federal protections.
Payoff Strategies
Paying even $50 extra per month on a $30,000 loan at 6% saves over $2,000 in interest and shortens the term by years. Target highest-rate loans first (avalanche method).
Refinancing federal loans to private removes forgiveness eligibility — only refinance if you have stable high income and do not need federal protections.
Key Takeaways
- Exhaust federal loan options before private borrowing.
- Extra payments toward principal save significant interest.
- Income-driven plans help cash flow but may increase total cost.
- Think carefully before refinancing federal loans to private.