How student loan payments are calculated
A standard plan uses a fixed monthly payment that clears the loan, with interest, by the end of the term. Longer terms lower the monthly payment but cost much more in interest.
Federal loans also offer income-driven repayment, where payments are a share of your discretionary income, and the federal rules changed for loans taken out from July 2026. Check your options and current rates at studentaid.gov, and talk to your servicer before choosing a plan. Private loans follow your lender's terms.
Ways to pay less
- Pay the interest while you're in school so it doesn't capitalize.
- Add even a small extra payment each month (try the field above).
- Check employer repayment help and Public Service Loan Forgiveness if you work in the public or nonprofit sector.