The student loan comparison calculator lets you enter up to 4 loan options and see them side by side — monthly payment, total interest, and total cost over the life of the loan — so you can pick the best option for your situation.
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Side-by-Side Comparison
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How to Compare Student Loans
The student loan comparison calculator helps you make an informed borrowing decision by showing the true cost of each loan option. A lower interest rate doesn't always mean lower total cost — the loan term also matters significantly.
Step 1: Enter Each Loan Option
Add each loan you're considering: name it (e.g., "Federal Direct Subsidized"), enter the principal amount, interest rate, and repayment term. You can compare up to 4 loans simultaneously. Use realistic numbers from your actual financial aid offer letters or lender quotes.
Step 2: Understand Monthly vs. Total Cost
A loan with a lower monthly payment often costs more over its life. For example: $25,000 at 5% for 10 years = $265/month, $31,741 total. The same loan extended to 20 years = $165/month, but $39,599 total — you pay $7,858 more in interest just for the lower monthly payment.
Step 3: Federal Loans First
Always exhaust federal loan options before considering private loans. Federal loans offer income-driven repayment (IDR), Public Service Loan Forgiveness (PSLF), and deferment/forbearance options that private loans typically do not. Even if a private lender offers a slightly lower rate, the flexibility of federal loans is usually worth more.
Step 4: Consider Your Career Income
The rule of thumb is to borrow no more than your expected first-year salary for your total student loan balance. If you expect to earn $55,000 as a starting teacher, try to keep total loans under $55,000. Higher debt-to-income ratios create financial strain — use this calculator to see how different borrowing amounts affect your monthly budget.
FAQ
How is monthly student loan payment calculated?
Monthly payments use the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is the monthly interest rate, and n is the number of payments. This formula ensures equal payments that cover both interest and principal over the loan term.
What's the difference between federal and private student loans?
Federal loans offer fixed rates set by Congress, income-driven repayment options, and forgiveness programs. Private loans from banks or lenders can have variable rates, may require a cosigner, and generally lack the repayment flexibility of federal loans. Federal loans are usually the better option when available.
What is the difference between subsidized and unsubsidized federal loans?
Subsidized loans don't accrue interest while you're in school at least half-time, during grace periods, or during deferment. Unsubsidized loans accrue interest from disbursement. For a $27,000 loan at 6.5%, interest during a 4-year school period could add $7,000+ to your balance if not paid.
Is this student loan calculator free?
Yes, completely free with no signup required. All calculations run in your browser — no data is sent anywhere.
How many loans can I compare at once?
You can compare up to 4 loans simultaneously. This is useful for comparing your federal loan offer against private lender quotes, or comparing different repayment term lengths for the same loan.
How much can I save by paying extra each month?
Extra monthly payments reduce your principal faster, saving significantly on total interest. On a $30,000 loan at 7% over 10 years (standard payment: $348/month), paying an extra $100/month saves about $2,900 in interest and pays off the loan 2 years earlier.