Frequently asked questions
Does interest accrue during the grace period?
For unsubsidized loans, yes. Interest capitalizes (adds to principal) when repayment begins, increasing your balance. Subsidized loans have interest covered by the government during grace. This calculator assumes interest accrues (unsubsidized).
Should I choose a longer repayment term?
A longer term lowers monthly payments but dramatically increases total interest. A $35,000 loan at 5.5% costs $11,000 interest over 10 years vs $26,000 over 20 years. Choose the shortest term you can comfortably afford.
Can I pay extra to pay off early?
Federal student loans have no prepayment penalty. Any extra payment reduces principal and saves future interest. Even $50 extra per month makes a meaningful difference on a 10-year term. See the Repayment Calculator for details.
What about income-driven repayment plans?
Income-driven plans (IBR, PAYE, REPAYE) cap payments at 10–20% of discretionary income and forgive remaining balance after 20–25 years. They lower payments but can increase total cost. This calculator models standard fixed repayment only.
Should I refinance my student loans?
Refinancing can save money if you qualify for a lower rate. However, refinancing federal loans into a private loan loses access to forgiveness programs, income-driven plans, and federal forbearance protections. Weigh the trade-off carefully.