# What will my student loan cost?

Computes the monthly payment, total interest, and loan fee of a federal Direct Loan at the 2026–27 rates, or a private loan, with interest that builds before repayment starts.

- Page: https://www.acalculator.org/finance/student-loan-calculator
- JSON spec: https://www.acalculator.org/finance/student-loan-calculator.json
- Version: af421901b413

## Default answer

Example with the default inputs (Loan type Undergraduate Unsubsidized, 6.52%, Amount borrowed $30,000.00, Repayment plan Standard plan, Months until repayment starts 0): Borrowing $30,000.00 at 6.52% and repaying it over 15 years costs $261.66 a month and $17,099.19 of interest.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| type | Loan type | A federal Direct Loan first disbursed from July 1, 2026 to June 30, 2027, or a private or other loan. |
| amount | Amount borrowed | The principal you borrow, before the loan fee is taken out. |
| rate | Interest rate | The fixed yearly interest rate of the loan. |
| fee | Loan fee | A fee taken out of the money paid to you, as a percent of the amount borrowed. |
| plan | Repayment plan | The standard plan for loans made from July 1, 2026 sets the years by the balance; or choose the years yourself. |
| years | Years to repay | The number of years of monthly payments. |
| wait | Months until repayment starts | Months between getting the loan and the first payment, for example the rest of school plus a 6-month grace period. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| payment | Monthly payment | The level monthly payment that repays the loan and any unpaid interest over the repayment years. |
| years | Years to repay | The repayment period in years. |
| rate | Interest rate | The fixed yearly rate used. |
| borrowed | Amount borrowed | The principal borrowed. |
| interest | Total interest | All the interest: what builds before repayment plus what builds during it. |
| before | Interest before repayment | The interest that builds before the first payment and is paid first when repayment starts. |
| paid | Total of payments | Every monthly payment added up. |
| feeAmount | Loan fee | The loan fee rate times the amount borrowed. |
| cash | Money paid out to you | The amount borrowed minus the loan fee. |

## Method

Monthly rate r = rate ÷ 12; interest before repayment = amount × r × months waited (none on Direct Subsidized); the level payment repays the principal and that interest in n months when each payment goes first to unpaid interest, then to principal (at no waiting, payment = amount × r ÷ (1 − (1 + r)^−n)).

## Assumptions

- Federal rates and fees are those for Direct Loans first disbursed from July 1, 2026 to June 30, 2027, fixed for the life of the loan.
- The standard plan sets 10, 15, 20, or 25 years by the amount borrowed, taken as your total federal principal.
- Interest before repayment is simple interest on the amount borrowed and is not added to the principal; it is paid first when repayment starts.
- The whole amount is disbursed at once, and interest is charged monthly at the rate ÷ 12.
- Values are not rounded to the cent between months; the Department truncates the loan fee to the cent.

## Worked examples

1. type = unsub, amount = $20,000.00, plan = standard gives years = 10, payment = $227.30, interest = $7,275.94, feeAmount = $211.40. Source: hand calculation in content.mdx; Python 3 in docs/progress/WP-31/python/student_loan.py.
2. type = grad, amount = $60,000.00, plan = standard, wait = 6 gives years = 20, before = $2,421.00, payment = $523.46, interest = $65,629.43. Source: hand calculation in content.mdx; Python 3 in docs/progress/WP-31/python/student_loan.py.
3. type = other, amount = $10,000.00, rate = 0%, fee = 2%, years = 5, wait = 12 gives payment = $166.67, interest = $0.00, cash = $9,800.00, years = 5. Source: hand calculation in content.mdx: 10,000 ÷ 60 at 0%.
4. type = sub, amount = $5,500.00, plan = years, years = 10, wait = 48 gives feeAmount = $58.13, payment = $62.51, interest = $2,000.88. Source: FY27 sequester announcement: the fee on a $5,500 loan is $58.13 (truncated); hand calculation in content.mdx.

## FAQ

### What are the federal student loan rates for 2026–27?

For Direct Loans first disbursed from July 1, 2026 to June 30, 2027 the fixed rates are 6.52% for undergraduate Subsidized and Unsubsidized Loans, 8.07% for graduate or professional Unsubsidized Loans, and 9.07% for PLUS Loans. Each rate is fixed for the life of the loan.

### What is the loan fee?

Federal Direct Loans charge a fee taken out of each disbursement: 1.057% for Subsidized and Unsubsidized Loans and 4.228% for PLUS Loans first disbursed from October 1, 2020 to September 30, 2027. You repay the full amount borrowed, so on $20,000 you receive $19,788.60 but repay $20,000 plus interest.

### How many years is the standard repayment plan?

For loans made on or after July 1, 2026, federal law sets the standard plan's period by your total outstanding principal: under $25,000, 10 years; $25,000 to under $50,000, 15 years; $50,000 to under $100,000, 20 years; $100,000 or more, 25 years. Payments are fixed each month. Older loans had a 10-year standard plan; choose "Choose the years" to model that.

### Does interest build while I am in school?

On Direct Unsubsidized and PLUS Loans, yes: interest starts when the loan is paid out. On Direct Subsidized Loans the government pays it while you are in school and during the grace period. The page adds the interest for the months you enter before repayment, and since July 1, 2023 that interest is not added to the principal when repayment starts; your first payments pay it off.

### Can I pay less each month?

Income-driven plans such as the Repayment Assistance Plan (RAP) base the payment on your income instead of the balance, and can lower it, but you may pay more interest over time. This page shows a fixed payment; use the Loan Simulator on StudentAid.gov to compare income-driven plans.

### How do private student loans differ?

Private loans set their own rates, fees, and terms, often based on your credit, and many add unpaid interest to the principal when repayment starts. Choose "Private or other loan" and enter the rate, fee, and years from your offer.

## Sources

- Federal Student Aid, Interest Rates for Federal Direct Loans First Disbursed Between July 1, 2026 and June 30, 2027 (June 4, 2026). https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2026-06-04/interest-rates-federal-direct-loans-first-disbursed-between-july-1-2026-and-june-30-2027
- Federal Student Aid, FY27 Sequester-Required Changes to the Title IV Student Aid Programs (May 13, 2026): loan fees. https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2026-05-13/fy27-sequester-required-changes-title-iv-student-aid-programs
- 20 U.S.C. 1087e(d)(7)(A)(i), standard repayment plan for loans made on or after July 1, 2026. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087e&num=0&edition=prelim
- U.S. Department of Education, final rule of November 1, 2022 (effective July 1, 2023) ending interest capitalization not required by statute, including when a borrower first enters repayment. https://fsapartners.ed.gov/knowledge-center/library/federal-registers/2022-11-01/final-regulations-borrower-defense-repayment-pre-dispute-arbitration-interest-capitalization-total-and-permanent-disability-discharges-closed-school-discharges-public-service-loan-forgiveness-and
- 34 CFR 685.211(a), order in which payments are applied: charges and collection costs, then outstanding interest, then principal. https://www.law.cornell.edu/cfr/text/34/685.211