How student loan payments work
On a standard plan, your loan is paid off in equal monthly payments over a fixed term, usually 10 years for federal loans. Each payment covers that month's interest first, then reduces the balance.
If you have several loans
Run the calculator once for each loan, or use the total balance with a weighted average rate. To weight the rate, multiply each balance by its rate, add those up, and divide by the total balance.
Paying extra
Federal loan servicers apply extra payments to interest first and then principal. You can ask your servicer to apply extra amounts to a specific loan, such as the one with the highest rate.
Frequently asked questions
What rate do federal student loans charge?
Federal Direct Loan rates are fixed for the life of each loan and set every year for loans first paid out after July 1. Check your servicer or studentaid.gov for the rate on each of your loans.
Does interest build up while I'm in school?
On unsubsidized and private loans, yes. Unpaid interest may be added to the balance when repayment starts, which raises the amount you pay interest on.
Can I pay off student loans early?
Yes. Federal and most private student loans don't charge prepayment penalties.