Student Loan Repayment & Refinancing Calculator
Calculate monthly payments, amortization schedules, and refinancing savings for Federal and Private student loans.
About
Student loan repayment strategies often hinge on the decision to refinance or accelerate payments. For borrowers with high-interest private loans or unsubsidized federal loans, a reduction in the annual percentage rate (APR) by even 0.5% can result in significant capital retention over a 10-year term. This tool performs dual functions: it generates a precise amortization schedule for existing debts and simulates a refinancing scenario side-by-side.
Accuracy in this domain is critical. Lenders use specific accrual methods (often simple daily interest), and miscalculating the payoff date by a few months can skew budget forecasting. This calculator accounts for principal capitalization, variable term lengths, and immediate impact analysis of extra monthly contributions against the principal balance.
Formulas
The monthly payment M is derived using the standard amortization formula:
Where P is the principal, r is the monthly interest rate (annual_rate ÷ 12), and n is the total number of payments.
Refinancing savings S are calculated as:
Reference Data
| Loan Type | Avg. Fixed Rate | Avg. Variable Rate | Standard Term |
|---|---|---|---|
| Direct Subsidized (Undergrad) | 5.50% | N/A | 10 Years |
| Direct Unsubsidized (Grad) | 7.05% | N/A | 10-25 Years |
| Direct PLUS (Parent/Grad) | 8.05% | N/A | 10-25 Years |
| Private Loan (Excellent Credit) | 4.50% - 9.00% | 5.00% - 9.50% | 5-20 Years |
| Private Loan (Fair Credit) | 9.00% - 14.00% | 10.00% - 15.00% | 5-20 Years |
| Refinance (Fixed) | 5.25% - 8.50% | N/A | 5-20 Years |