Student Loans: Types, Benefits, and Repayment Plans

Student loans are financial aid that students can borrow to pay for their education-related expenses, such as tuition, books, and living costs. These loans come in two main types: federal loans, offered by the government with fixed interest rates and flexible repayment options, and private loans, provided by banks or other private entities, often requiring a credit check.

Unlike grants or scholarships, student loans must be repaid, typically starting after the student graduates or leaves school.

Understanding Student Loans

For many students, student loans are an essential part of financing their education. However, managing the complexities of these loans can be overwhelming. 

Student loans are financial aid created to assist students with the costs of post-secondary education, including tuition, books, supplies, and living expenses. Unlike scholarships and grants, which don't require repayment, student loans must be paid back. There are primarily two types of student loans: federal student loans, which are provided by the government, and private student loans, available through banks and various private lending institutions.

How Student Loans Work

Understanding the mechanics of student loans, particularly regarding interest rates and repayment, is important for effective debt management.

Interest Rates and Accrual:

• Federal Loans: These loans usually have fixed interest rates set by the government. The rate is determined annually and applies for the life of the loan.
• Private Loans: Interest rates can be fixed or variable, with the latter subject to market fluctuations. This variability can impact the total cost of the loan over time.
• Interest Accrual: Interest begins to accumulate as soon as the loan is disbursed. For unsubsidized federal loans and private loans, interest accrues while the student is in school, which can significantly increase the total amount owed.

Loan Terms and Repayment Periods:

Grace Periods and Repayment Terms: Federal student loans typically offer a six-month grace period post-graduation before repayment begins. Private loans may or may not have a grace period, and their repayment terms can vary significantly.

Repayment Duration: The standard repayment duration for federal loans is 10 years, but this can be extended up to 25 years or more with certain repayment plans. Private personal loan repayment terms are set by the lender and can range from 5 to 15 years, sometimes longer.

Understanding the nuances of student loans, from the types available to the specifics of interest accrual and repayment, is vital for students and families dealing with the financial aspect of higher education. This knowledge is key for making informed decisions and managing educational debt responsibly.

Federal Student Loans

Federal student loans are provided by the government and are a primary source of financial aid for college students. Let's delve deeper into their characteristics:

These loans aim to help students with expenses related to higher education, such as tuition, room and board, books, and other academic costs. They represent the government's effort to make post-secondary education more accessible.

Benefits:

1. Lower Interest Rates: One of the most significant advantages of federal student loans is their relatively low-interest rates, which are often fixed and lower than those of private loans.
2. Subsidized Options: For students demonstrating financial need, the government offers subsidized loans where the government pays the interest while the student is in school, during the grace period, and during any deferment periods.
3. Repayment Plans: Federal loans provide various repayment options, including standard, graduated, extended, and income-driven plans, offering flexibility based on the borrower's financial situation.
4. Forgiveness and Deferment Options: There are circumstances under which borrowers can have their loans forgiven, canceled, or discharged. Additionally, borrowers can defer payments under certain conditions, such as economic hardship or military service.

Limitations:

• Borrowing Caps: Federal student loans come with annual and aggregate borrowing limits, which may not cover the full cost of attendance, leading students to seek additional funding sources.
• Eligibility Criteria: These loans require students to meet certain criteria, including being a U.S. citizen or eligible non-citizen, having a valid Social Security number, and maintaining satisfactory academic progress.

Repayment Plans for Federal Loans

Repayment plans for federal student loans are designed to provide flexibility and make it easier for borrowers to manage their debt based on their financial situation. Understanding the different types of repayment plans can help borrowers choose the best option for their circumstances. Here's an in-depth look at the various federal student loan repayment plans:

1. Standard Repayment Plan:

• Duration: 10 years (up to 30 years for Consolidation Loans).
• Payments: Fixed amount each month, ensuring the loan is paid off within the set timeframe.
• Suitable for: Borrowers who can handle higher monthly payments and want to pay off their loans quickly to save on interest.

2. Graduated Repayment Plan:

• Duration: 10 years (up to 30 years for Consolidation Loans).
• Payments: Payments start low and increase every two years.
• Suitable for: Borrowers who expect their income to increase over time. This plan initially has lower payments that gradually rise.

3. Extended Repayment Plan:

• Duration: Up to 25 years.
• Payments: Can be fixed or graduated. Monthly payments are lower than the standard plan but will result in more interest paid over the life of the loan.
• Eligibility: Borrowers must have more than $30,000 in Direct Loans or FFEL Program loans.
• Suitable for: Borrowers who need a lower monthly payment and are willing to pay more in total interest.

4. Income-Driven Repayment Plans: These plans tailor your monthly payment to a manageable amount, determined by your income and your family size.

Revised Pay As You Earn Repayment Plan (REPAYE):

• Payments: Generally 10% of your discretionary income.
• Duration: 20 years for undergraduate loans and 25 years for graduate or professional study loans.
• Suitable for: Borrowers seeking loan forgiveness after the repayment period and those with a high debt-to-income ratio.

Pay As You Earn Repayment Plan (PAYE):

• Payments: Generally 10% of your discretionary income, but never more than the 10-year Standard Repayment Plan amount.
• Duration: 20 years.
• Suitable for: Borrowers who need a lower payment than the standard plan and qualify based on their income and loan disbursement dates.

Income-Based Repayment Plan (IBR):

• Payments: Generally 10% or 15% (for others) of your discretionary income, but never more than the 10-year Standard Repayment Plan amount.
• Duration: 20 years for new borrowers on or after July 1, 2014, and 25 years for others.
• Suitable for: Borrowers who need a lower payment and qualify based on their income.

Income-Contingent Repayment Plan (ICR):

• Payments: The lesser of 20% of your discretionary income or what you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income.
• Duration: 25 years.
• Suitable for: Borrowers with Direct Loans who want their payments to be based on their income, without the stricter eligibility requirements of other plans.

Key Considerations:

1. Eligibility: Not all repayment plans are available for all types of federal student loans. It's important to check which plans your loans are eligible for.
2. Loan Forgiveness: Under income-driven plans, any remaining loan balance is forgiven if your federal student loans aren't fully repaid at the end of the repayment period. However, you may have to pay income tax on any amount that's forgiven.
3. Changing Plans: You can usually change repayment plans at any time. If you switch to an income-driven plan, you may need to provide information about your income and family size each year.
4. Interest Accumulation: Lower monthly payments under extended or income-driven plans can result in more interest accumulating over the life of the loan, increasing the total amount paid.

Federal student loans, backed by the government, offer lower interest rates, subsidized options, and flexible repayment plans, making them a key financial aid resource for college students.

However, they come with borrowing caps and specific eligibility criteria, necessitating careful consideration and planning for effective management of education-related expenses.

Private Student Loans

Private student loans are a type of financial aid for educational expenses. In contrast to federal student loans, which the government provides, private student loans come from banks, credit unions, and other private financial institutions. Let's take a closer look at private student loans:

Characteristics of Private Student Loans:

Lender Variety:

• Offered by banks, credit unions, and other financial institutions.
• Terms and conditions vary significantly between lenders.

Credit-Based:

• Approval and interest rates depend on the borrower's (and often a co-signer's) credit history.
• Borrowers with higher credit scores generally receive lower interest rates.

Interest Rates:

• Can be fixed or variable.
• Typically higher than federal student loans, especially for borrowers with lower credit scores.
• Interest may start accruing as soon as the loan is disbursed.

Repayment Terms:

• Vary by a lender; some may require payments while in school, and others may defer payments until after graduation.
• Less flexible compared to federal loan repayment options.
• Typically, do not offer income-driven repayment plans.

Fees:

• This may include origination fees, late fees, and other charges.
• Fee structures vary widely between lenders.

Loan Limits:

• Often higher than federal student loans, sometimes covering up to the full cost of attendance minus other financial aid.
• The amount can depend on the borrower's creditworthiness and the cost of attendance at the educational institution.

Co-Signer Requirements:

• Many private student loans require a co-signer, especially for borrowers with limited or no credit history.
• The co-signer shares responsibility for the loan and their credit is affected by the loan.

Differences from Federal Loans

1. Credit and Income Requirements: Private loans are credit-based, often requiring a good credit score or a co-signer with a strong credit history. The terms of the loan, including the interest rate, are influenced by the borrower's or co-signer's creditworthiness.
2. Variable Interest Rates: Private loans may have fixed or variable interest rates. Variable rates can fluctuate over the life of the loan, potentially increasing the total amount to be repaid.
3. Repayment Flexibility: Private loans typically offer less flexibility in repayment options and do not feature income-driven repayment plans or loan forgiveness programs.
4. Co-Signer Necessity: Many students need a co-signer to qualify for a private loan due to their limited credit history.

Private student loans can be a useful tool to bridge the gap in college funding when federal loans and other forms of financial aid are not sufficient. However, they typically come with higher costs and fewer protections than federal student loans. It's important for borrowers to thoroughly research and compare different private loan options, understand the terms and conditions, and consider their long-term financial impact before making a decision.

Preparing to Take a Student Loan

Starting college often means dealing with student loans. It's important to carefully evaluate how much money you need and know how your credit history can affect your loan choices. This part explains more about these important first steps.

Assessing Your Financial Need

Estimating College Expenses Beyond Tuition: The cost of attending college includes more than just tuition fees. It's really important to figure out all the costs you might face to know how much you need to borrow. Think about these things:

1. Room and Board: This includes not only the cost of a dorm room or apartment but also the day-to-day living expenses such as meals, utilities, and internet service.
2. Books and Supplies: Course materials often extend beyond textbooks. Depending on your field of study, you may need specialized software, lab equipment, or art supplies.
3. Transportation: Factor in the costs of commuting to campus, whether it’s public transportation, gas, parking fees, or even flights home during breaks.
4. Personal Expenses: Everyday expenses like laundry, toiletries, clothing, and leisure activities can add up. It's important to budget for these to avoid financial strain.
5. Additional Fees: Universities often charge fees for technology, student activities, health services, and other campus resources. These can vary significantly from one institution to another.

Creating a detailed budget that encompasses all these aspects will provide a more accurate picture of your total financial need, helping you make informed decisions about borrowing.

Understanding Your Family Contribution and Financial Aid Options:

The expected family contribution (EFC) is a key element in determining your financial aid eligibility. Here’s how to approach it:

Family Contribution Assessment: Have an open discussion with your family about their financial situation. Understand what they can contribute, including savings, current income, and investments.

Exploring Financial Aid: Beyond student loans, exhaust all other financial aid avenues. Scholarships, whether merit-based or need-based, can greatly reduce the amount you need to borrow. Grants, which don’t need to be repaid, are another crucial resource. Don’t overlook work-study programs, which provide a way to earn money while studying.

The Role of Credit History in Private Student Loans:

Your credit history is a critical factor in securing private student loans. Lenders use it to evaluate your creditworthiness and determine loan terms.

Impact on Loan Terms: A strong credit history can lead to more favorable loan terms, such as lower interest rates and more flexible repayment options. Conversely, a poor credit history can result in higher interest rates or even loan denial.

Co-Signer Considerations: For students with limited or no credit history, a co-signer with a strong credit profile can be a great advantage. The co-signer’s credit history can help secure the loan and potentially improve the terms.

Tips for Building or Improving Credit Scores:

Building a good credit score is a gradual process, but it's important for accessing private student loans on favorable terms.

1. Establishing Credit Early: Consider opening a credit account, such as a student credit card or a small personal loan, to start building your credit history.
2. Responsible Credit Use: Maintain low balances and avoid maxing out credit cards. High credit utilization can negatively impact your credit score.
3. Timely Payments: Consistently paying your bills on time is one of the most significant factors in building a good credit score. Late payments can severely damage your credit.
4. Regular Credit Monitoring: Keep an eye on your credit report to track your progress and dispute any inaccuracies. Regular monitoring can also help you understand how different financial behaviors affect your credit score.

Preparing to take a student loan involves a thorough evaluation of your financial needs and a clear understanding of how your credit history affects your loan options. 

Applying for Student Loans

Once you have a clear understanding of your financial needs and the role of credit in student loans, the next step is the loan application process. This phase involves dealing with the Free Application for Federal Student Aid (FAFSA) and choosing the right loan that suits your needs. Let's delve into these critical steps.

Understanding and Completing the FAFSA Process (Free Application for Federal Student Aid)

Step-by-Step Guide: The FAFSA is a prerequisite for federal student aid and is often required by colleges for their own financial aid programs. Here’s how to tackle it:

Step 1. Gather Necessary Documents: 

Before starting, collect all required documents, including your Social Security number, your parents' tax returns (if you're a dependent), your tax returns (if applicable), bank statements, and any investment records.

Step 2. Create an FSA ID:

The FSA ID serves as your electronic signature and provides access to various Federal Student Aid systems. Both students and parents need their own FSA IDs.

Step 3. Fill Out the FAFSA Form:

Visit the official FAFSA website and start filling out the form. It includes sections on student demographics, financial information, school selection, and dependency status.

Step 4. Review and Submit:

Double-check all the information for accuracy. Errors can delay processing and affect the amount of aid you receive.

Step 5. Review Your Student Aid Report (SAR):

After submission, you’ll receive a SAR summarizing the information you provided. Review it for any inaccuracies.

Step 6. Respond to Aid Offers:

Once your FAFSA is processed, colleges will use the information to determine your aid package. Review these offers carefully.

Common Mistakes to Avoid:

• Missing Deadlines: Each state and college may have its own deadline. Ensure you submit the FAFSA before the earliest deadline.
• Incorrect Information: Mistakes in household income, tax information, or Social Security numbers can lead to processing delays.
• Not Filing Due to Income Misconceptions: Many people mistakenly believe they won't qualify for aid due to their income. FAFSA is not just for grants; it's also used for work-study and federal student loans.

Choosing the Right Loan for You

Comparing Interest Rates and Terms: Once you have an idea of the aid available to you, it's time to compare loans.

Federal vs. Private Loans: Start by comparing the interest rates and terms of federal loans versus private loans. Remember, federal loans often have more favorable terms.

Fixed vs. Variable Rates: Understand the difference between fixed and variable interest rates. Fixed rates remain the same throughout the life of the loan, while variable rates can fluctuate.

Understanding Co-Signer Requirements for Private Loans:  If you're considering private student loans, here’s what you need to know about co-signers:

Necessity of a Co-Signer: Many students require a co-signer for private loans due to their limited credit history. A co-signer with a strong credit history can help secure a loan and possibly get better loan terms.

Responsibility of the Co-Signer: It’s important to understand that the co-signer is equally responsible for repaying the loan. If you fail to make payments, it will also affect the co-signer’s credit.

Carefully going through the FAFSA and comparing loan options helps you choose a plan that fits your budget and repayment plans for the future.

Managing Student Loans Responsibly

After securing a student loan, the focus shifts to managing it responsibly. This involves creating a budget that accommodates loan repayments and understanding the options available for loan forgiveness and repayment programs. 

Budgeting with a Student Loan

Creating a Budget that Includes Loan Repayments: Effective budgeting is key to managing your finances and ensuring you can comfortably make your loan repayments. Here’s how to create a budget:

1. Calculate Your Monthly Income: Include all sources of income, such as wages from a job, financial aid refunds, and any other regular income.

2. List Your Expenses: Start with fixed expenses like rent, utilities, and insurance. Then, estimate variable costs such as groceries, transportation, and personal expenses.

3. Account for Loan Repayments: Factor in your student loan repayments. Even if you’re not required to make payments while in school, considering these costs in your budget can help you prepare for the future.

4. Prioritize and Adjust: Ensure your expenses do not exceed your income. If they do, look for areas to cut back. Prioritize essential expenses and loan repayments.

5. Review and Update Regularly: Your budget should be a living document. Regularly review and adjust it as your financial situation changes.

Tools and Resources for Financial Planning: Several tools and resources can help you manage your budget and student loans:

• Budgeting Apps: Apps like Mint, You Need a Budget (YNAB), or PocketGuard can help you track your spending and manage your budget.
• Loan Repayment Calculators: Use online calculators to understand how different repayment plans will affect your monthly payments and total loan cost.
• Financial Advisors: Consider speaking with a financial advisor, especially if you have multiple loans or complex financial situations.

Loan Forgiveness and Repayment Programs

Federal Loan Forgiveness Programs: Federal student loans offer several forgiveness programs:

• Public Service Loan Forgiveness (PSLF): For borrowers employed in government or non-profit organizations. Requires 120 qualifying monthly payments under a qualifying repayment plan.
• Teacher Loan Forgiveness: This program is accessible to teachers who serve in low-income schools for a continuous period of five years.
• Perkins Loan Cancellation: For borrowers with Perkins Loans who perform certain types of public service or are employed in certain occupations.

Income-Driven Repayment Plans: These plans modify your monthly payments to align with your income and the number of people in your family.

• Revised Pay As You Earn Repayment Plan (REPAYE): Payments are generally 10% of your discretionary income.
• Pay As You Earn Repayment Plan (PAYE) and Income-Based Repayment Plan (IBR): Payments are generally 10% (PAYE) or 15% (IBR) of your discretionary income but never more than the 10-year Standard Repayment Plan amount.
• Income-Contingent Repayment Plan (ICR): Payments are the lesser of 20% of your discretionary income or what you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income.

Managing student loans responsibly is crucial for financial health and future stability. By creating a realistic budget and staying informed about repayment and forgiveness options, you can effectively manage your student debt and work towards financial freedom.

The Long-term Impact of Student Loans

Student loans are not just a short-term financial commitment; they have long-term implications, especially on your credit score and financial stability post-graduation. Understanding these impacts and preparing for life after graduation are important steps in managing your student loans effectively.

Understanding the Impact on Credit Score

Student loans, like any form of credit, play a significant role in your credit history. Here’s how they can impact your credit score:

Positive Impact: Consistent, on-time loan payments can positively affect your credit score. A history of regular payments demonstrates to creditors that you are a responsible borrower.

Negative Impact: Late or missed payments can significantly harm your credit score. Additionally, high loan balances relative to your initial loan amounts can also negatively impact your score.

Strategies for Maintaining a Good Credit Score While Repaying Loans: Maintaining a good credit score while repaying student loans requires careful financial management:

1. On-Time Payments: Always pay your student loans on time. Consider setting up automatic payments to avoid missing deadlines.
2. Contact Your Lender If You Face Financial Hardship: If you’re struggling to make payments, contact your lender immediately. They may offer options like deferment, forbearance, or adjusting your repayment plan.
3. Keep Credit Utilization Low: Try to maintain a low balance on other forms of credit, like credit cards.
4. Monitor Your Credit Score: Regularly check your credit report for errors and to understand how your student loans are impacting your credit.

Life After Graduation: Repayment and Beyond

Transitioning from In-School Deferment to Repayment: As you graduate and enter the workforce, your student loans will transition from deferment (a period when you are not required to make payments) to repayment.

Understand Your Grace Period: Most federal student loans have a six-month grace period after graduation before payments start. Use this time to plan and budget for your new financial obligations.

Choose the Right Repayment Plan: Evaluate different repayment plans to find one that suits your financial situation. Consider income-driven repayment plans if you’re starting with a lower salary.

Refinancing and Consolidating Student Loans: Refinancing or consolidating your student loans can be a strategic move in managing them effectively.

Refinancing: This involves taking out a new loan to pay off one or more existing student loans. This can be beneficial if you qualify for a lower interest rate, which can reduce your monthly payments and the total cost of the loan.

Consolidating Federal Loans: Federal loan consolidation combines multiple federal student loans into one loan, potentially simplifying repayment. However, it may not result in a lower interest rate.

Considerations: When considering refinancing or consolidation, think about factors like interest rates, loan terms, and potential loss of benefits (like federal loan forgiveness programs) if you refinance federal loans with a private lender.

Understanding the long-term impact of student loans on your credit score and preparing for life after graduation are essential steps in responsible loan management. By staying informed and proactive, you can navigate the complexities of student loan repayment and maintain financial stability in your post-graduate life.

Expert Advice and Case Studies

Gaining insights from financial experts and accessing valuable resources can greatly enhance your ability to manage student loans effectively. Interviews with financial advisors and case studies provide real-world advice and strategies that can be applied to your own student loan experience. 

Interviews with Financial Advisors

Engaging with financial advisors can offer a wealth of knowledge. Here are some key insights that might emerge from such interviews:

1. Strategic Repayment Planning: "Consider paying off your high-interest loans first to reduce the total interest paid over time. If you have federal loans, look into income-driven repayment plans that can adjust your monthly payments according to your income."

2. Budgeting Techniques: "Create a budget that allocates a portion of your income to loan repayments, while also setting aside money for savings and investments. It's important to balance paying off your loans with building an emergency fund and saving for retirement."

3. Managing Loan Forgiveness and Repayment Programs: "If you work in public service or certain other professions, you might be eligible for loan forgiveness programs. Let's review your employment situation and loan types to see if you qualify and understand the application process."

4. Long-Term Financial Planning: "Your student loans are just one part of your overall financial picture. We need to consider how they impact your credit score, investment opportunities, and your financial goals, like buying a house or starting a family."

Case Studies: 

Real-life case studies offer invaluable insights into the practical aspects of managing student loans. By examining the experiences of various individuals, we can get lessons and strategies that apply to a wide range of situations. 

1. Graduates Successfully Managing Loans:

Emily's Strategic Repayment Plan

Emily graduated with $30,000 in student loans. She started working at a non-profit organization with a modest salary. Emily opted for an income-driven repayment plan, which made her monthly payments affordable based on her income. She also set up automatic payments to ensure on-time payments and avoid late fees.

Over time, as her salary increased, Emily began making extra payments towards her loans. She also applied for the Public Service Loan Forgiveness program and successfully had her remaining balance forgiven after ten years of qualifying payments.

Alex's Refinancing Success

Alex left college with $45,000 in student loans, including both federal and private loans. After a few years of consistent payments and career advancement, Alex's credit score improved. He decided to refinance his high-interest private loans to a lower interest rate, reducing his monthly payment and the total interest paid over the life of the loan.

With the reduced interest rate and continued disciplined payments, Alex managed to pay off his loans in under 10 years, saving thousands in interest.

2. Challenges and Solutions:

Jordan's Overcoming Unemployment

Jordan faced unexpected unemployment two years after graduation, making it difficult to keep up with student loan payments. Jordan contacted his loan servicer and discussed his situation. He was able to temporarily defer his federal student loans and reduce payments on his private loans through forbearance.

Once Jordan found stable employment, he resumed his payments and adjusted his budget to catch up on the deferred amount, avoiding default.

Sara's Debt-to-Income Ratio Challenge

Sara, a medical school graduate, had a substantial student loan debt of $200,000, which was overwhelming compared to her initial residency salary. Sara enrolled in an income-driven repayment plan, which made her monthly payments manageable. She also lived frugally and avoided additional debt.

As her income increased with her career progression, Sara was able to increase her monthly payments and is on track to pay off her bad credit loans while maintaining a balanced lifestyle.

3. Diverse Financial Backgrounds:

Liam's Experience from Low-Income Background

Coming from a low-income family, Liam relied heavily on student loans to finance his education. Liam took advantage of federal grants and work-study programs during college to minimize borrowing. Post-graduation, he used a combination of income-driven repayment and side gigs to manage his loan repayments.

Liam's proactive approach and commitment to repayment allowed him to steadily reduce his loan balance while supporting his family.

Maya's Balancing Act with Part-Time Study

Maya opted to study part-time while working, accruing less debt than the average full-time student. She chose a community college for her initial courses to reduce costs, then transferred to a four-year university. Maya used a mix of federal loans and personal savings to finance her education.

By the time she graduated, Maya had a manageable amount of debt, which she was able to pay off within five years due to her careful planning and budgeting.

These case studies demonstrate that successful management of student loans is possible through various strategies, including income-driven repayment plans, refinancing, budgeting, and seeking forgiveness programs. They also highlight the importance of being proactive and adaptable in the face of financial challenges and changes in life circumstances.

Conclusion

Student loans are a vital tool for many in achieving their educational goals, but they come with complexities and responsibilities. Ultimately, understanding and responsibly managing student loans is super important for long-term financial health.

It requires careful planning, informed decision-making, and a proactive approach to repayment and credit management. With these strategies in place, students and graduates can manage the challenges of student loans and pave the way for a secure financial future.

Additional resources

Here are some additional resources, including books, tools, apps, and websites, that can be extremely helpful for anyone looking to manage student loans more effectively:

Books:

"CliffsNotes Graduation Debt: How to Manage Student Loans and Live Your Life" by Reyna Gobel - A guide on managing student loans without sacrificing your quality of life.

"Student Loan Solution: 5 Steps to Take Control of your Student Loans and Financial Life" by David Carlson - Offers practical advice and strategies for managing student debt and achieving financial freedom.

Online Tools and Calculators:

Federal Student Aid Repayment Estimator - This tool helps you estimate your federal student loan payments under each repayment plan.

Bankrate Student Loan Calculator - A useful tool for calculating monthly payments and the total cost of your loan.

Websites and Apps:

Student Loan Hero - This app offers personalized repayment plans and refinancing options for your student loans.

The Institute for College Access & Success (TICAS) - Provides research and advocacy on issues related to student debt and higher education policy.

Frequent Questions

How do I apply for federal student loans?What's the difference between subsidized and unsubsidized federal loans?What happens if I can't repay my student loan?Can I pay off my student loans early?What happens if I default on my student loans?Are there any tax benefits to student loans?What should I do if I'm having trouble making my loan payments?What's the difference between subsidized and unsubsidized federal loans?What is a deferment or forbearance?Can I consolidate federal and private student loans together?Can I use student loans for expenses other than tuition?What happens to my student loans if I drop out of school?Can I change my repayment plan?How do I know if I qualify for loan forgiveness?