This post will explain student loan calculator. Knowledge is usually power, especially when it comes to student debt. You can choose the best course of action for you by being aware of how much you owe, how long it will take to pay off your student loans, and how to compare repayment options. If math isn’t your thing, there are loan calculators that can perform the grunt work for you. You may develop or utilise a student loan payback calculator in Excel. Here are some excellent student loan calculators that you may use to help you decide on your repayment plan in an informed manner. If you’d like, you can also use our advice to create your own student loan payback spreadsheet.
Top 7 Best Student Loan Calculators In 2022
In this article, you can know about student loan calculator here are the details below;
1. Loan Simulator from the U.S. Department of Education
What it does: Evaluates several student loan repayment options. Why it’s beneficial Shows monthly payments and amounts paid under different repayment plans using information about your loan and income.
If you’re on a qualified plan, the Loan Simulator, formerly known as the Repayment Estimator, will help you figure out how much of your student loans might be forgiven. The calculator only shows you the payback options for which you qualify after using information relevant to your loan.
It’s critical to understand that the Loan Simulator uses your current income and makes the assumption that your discretionary income will increase at the same rate each year.
Try comparing the output of the Simulator with what our PSLF calculator produces if you’re using the calculator to determine your eligibility for (or savings under) Public Service Loan Forgiveness (PSLF).
Federal Student Aid (FSA), a division of the Department of Education, offers the Simulator. It also aids existing students in determining if taking on further debt is affordable.
2. Student Loan Prepayment Calculator from Student Loan Hero
How it works: Displays the results of making additional payments or paying off your student loans sooner than expected. Why it’s beneficial You will probably save money and pay off your debts faster if you increase your monthly repayments.
Calculations are made simpler by the Student Loan Hero student loan prepayment calculator. Take your $30,000 in student loans as an illustration. They are repaid over a ten-year period. You are paying $325 a month since your interest rate is 5.5 percent. You may cut 20 months off the entire payback period and save $1,634 in interest by increasing your monthly payment by $50. Also check navient login
Make sure your additional student loan payments are calculated properly if you are making them. What additional amount would you want to add to your monthly payment?
Additionally, you may use our Lump Sum Extra Payment Calculator if you’re interested in sometimes paying off your student loan debt early when you come into some extra money.
3. The College Scorecard from the Department of Education
How it works: Compares the typical student loan debt of individuals who attended particular universities. Why it’s beneficial Data are automatically imported per college and include the proportion of students who borrow, their median loan amount, and their average monthly payment.
The Department of Education’s College Scorecard will import a figure if you don’t know the average debt burden of the college you’re attending or contemplating. Simply enter the school’s name in the text box.
Additionally, Betsy DeVos, the secretary of education for the United States, declared in December 2020 that a new Scorecard would enable users to “compare average earnings two years after graduation based on field of study and how much federal student loan debt they can expect to incur, including new information on Parent PLUS loans.” The calculator is now more helpful for households where parents are thinking about borrowing money for their kids.
Having said that, the data points in the Scorecard are averages and should only be used as a general reference. Use the College Scorecard in this context, however it is more of a tool than a calculator. Also bear in mind that it only takes into account federal student loan debt, not the median amount owed on private loans.
Use our assistance package comparison tool if you have already submitted applications to universities or if you have received offers of financial help.
4. Student Loan Refinancing Calculator from Student Loan Hero
How it works: compares the cost reductions between refinanced and existing loans. Why it’s beneficial just how much money a refinance may save you. Numerous of these calculators allow you to see what would happen if your monthly payments or loan duration are changed. However, there is an option to lower your overall loan costs while also lowering your monthly payments: student loan refinancing.
Try using calculator tools to evaluate several situations if your income has increased, you live in a less costly city, or you want to reallocate your budget to prioritise paying off student loans. Refinancing your student loans can frequently result in cost savings for you.
Let’s take an example where you have $40,000 in student loans with a 20-year payback period and a 6.5 percent interest rate. You’d be required to pay interest totaling $31,575 throughout the loan’s term. However, you would have to pay $18,830 in interest if you refinance the loan to spread the repayment out over 15 years at a rate of 5.5 percent. You would pay $298 per month in the first case and $327 per month in the second.
Based on various loan offers you’ve received, the Student Loan Hero student loan refinancing calculator assists you in determining whether this choice could be the best one for you. The calculator will calculate your savings when you enter the information for your existing loan, the one you’re contemplating, and the period and interest rate.
STUDENT LOAN REFINANCING CALCULATOR
It makes sense to pay more loan toward your student loans if you can. Additionally, it becomes useful to compare interest rates across loan offers and determine whether refinancing to a cheaper interest rate is an option. After all, in the scenario outlined above, paying an extra $29 a month would result in savings of $12,745; thus, it could be worthwhile to examine your budget to find any wiggle space.
We offer suggestions on some of the top student loan refinancing choices now available so you may receive precise savings estimates if you’re unclear of what rates are available.
5. Student Loan Calculator from The Washington Post
What it does: It illustrates your financial requirements for paying off student debts. Why it’s beneficial imports salary data for the profession of your choice. The Student Loan Calculator from The Washington Post is pretty helpful for comparing student loan debt to income in a certain career.
It imports information on wage estimates from the Bureau of Labor Statistics. But watch out: Regardless of experience, the pay is the median wage; not the median beginning salary.
Your particular pay will depend on a variety of factors, including the business you work for, the area in which it is situated, and your personal background. This calculator may be used as a rough estimate to help you determine which employment would enable you to repay your student debts within the time frame you wish. Also check AT&T Universal Card
6. Student Loan Calculator from Student Loan Hero
What it does: Estimates the cost of loan deferral. Why it’s beneficial shows the additional cost of delaying borrowing. This calculator for deferring student debts is the simplest on the list, but it still applies to everyone who borrows loan for student. It offers a solution to the query of how much paying off loans later will cost you.
Since interest costs continue to accrue on unsubsidized loans that are in deferral, you should be aware of this figure. You don’t want to be caught off guard when your primary amount ends up being bigger than your beginning balance since interest will continue to accrue on top of it. You may use this calculator to see whether it makes sense for you to postpone paying down student debt.
7. Student Loan Payoff vs. Invest Calculator from Student Loan Hero
How it works: determines if it is preferable to invest first or pay off debt. Why it’s beneficial helps you decide whether to invest or pay off debt based on your circumstances. Which is better for you in the long run: investing that money or making further student loan payments? You may calculate it using Student Loan Hero’s student loan payback vs. investment calculator.
Enter your current investment information, including retirement savings and years of contributions, as well as your current loan information, including balance and interest rate.
Consider that you owe $35,000 on your student loans, as an illustration. You’re paying an interest rate of 5.7 percent on monthly instalments of $383. You have $5,000 in retirement savings with a 6% yearly return at the same time. You intend to continue contributing for another 20 years at the same $200 per month rate.
The calculator will demonstrate how much faster your student debts would be paid off if you made an additional $317 every month, or $700 overall. But it would also demonstrate how investing that $317 will increase your retirement savings. The long-term findings will then be shown for you.
PAYOFF VS. INVEST CALCULATOR
You may boost the balance of your retirement fund by $52,718 by raising your contribution by $317 every month for 4.8 years (including interest). For about 15.2 years after you stop contributing, the additional money you donate will continue to collect interest in your investment account. The long-term outcomes are shown below:
You may prepay your student loans with an additional $317 per month over the course of the following 4.8 years, saving $5,959 in interest and paying them off 5.2 years sooner.
If you had invested the $317 every month instead, you would have made an additional $34,332 over the course of 20 years.
Create or use a student loan payoff calculator in Excel
Make your own student loan payback spreadsheet if you’re seeking for something more long-lasting than a one-time computation. This spreadsheet was made by Student Loan Hero creator Andy Josuweit for himself in order to reduce his spending and determine when he would be debt-free after paying off his $107,000 in student loan debt. The entire thing may be downloaded here, but here is how part of it appeared:
Of course, you are under no need to create your own student loan payments spreadsheet. Excel spreadsheets with student loan payback calculators already created by other borrowers are available. Time can be saved by using a template.
You may keep track of your debts and payments using, for instance, the Microsoft college loan calculator template. It’s a live document that you may store on your desktop until the day you are debt-free, unlike the calculators mentioned above.
Excel student loan payout calculators are just one of the Microsoft templates available to assist you in moving forward with payments. For instance, borrower Caitlin Navratil wiped off $15,000 in student loan debt in 10 months, in large part because of an Excel template for a loan amortisation programme.
Of course, not everyone is curious in creating or even keeping a spreadsheet for student loan payments. So you might also attempt an online service or mobile app if you wish to track your payback without entering formulas into cells. For instance, the My LendingTree dashboard keeps track of credit ratings and other financial data.
Use these calculators to formulate a plan
While it may seem impossible to pay off your student debts, doing the arithmetic might help you come up with a strategy. It doesn’t matter if you use one of the pre-made calculators mentioned above or if you want to build your own or adopt a student loan payment calculator using Excel, Google Sheets, or another tool.
You may devise a clever plan that fits your budget to pay off your student loans by entering several payment options and examining the variations in total expenditures.
You may set up automatic payments for the monthly sum of your choice using this information. When your salary increases or you have extra disposable income each month, it’s a good idea to get in the habit of thinking about your monthly loan payback amount. You may be inspired to pay more now if you are aware of how much money you will save in the long term.
Check out our whole loan of student loan tools if you have an issue with your student loans that can’t be resolved by one of the calculators or student loan payback spreadsheets mentioned above.
