Save Student Loan Calculator
Student loans can be a major financial challenge, especially when repayment options are complex. The Save Student Loan Calculator is designed to help borrowers quickly estimate monthly and annual payments, discretionary income, and potential forgiveness under income-driven repayment plans.
This tool is ideal for anyone looking to understand how much they might pay each month and how long it will take to repay their loans based on income, family size, loan type, and interest rate.
What Is the Save Student Loan Calculator?
The Save Student Loan Calculator estimates payments for federal student loans under income-driven repayment rules. Unlike standard repayment plans that only consider loan balance and interest, this calculator incorporates:
- Adjusted Gross Income (AGI)
- Family size
- Loan type (undergraduate or graduate/professional)
- Weighted average interest rate
By combining these factors, the calculator provides a realistic estimate of monthly and annual payments, total paid over the life of the loan, and potential forgiveness.
Key Features of the Calculator
- Monthly Payment Estimate
The calculator shows your expected monthly payment based on your income and loan type. - Annual Payment
Provides the total payment for one year, helping with budgeting and planning. - Discretionary Income
Discretionary income is the portion of your earnings above a protected threshold based on federal poverty guidelines. - Payment as a Percentage of Income
Understand what portion of your income will go toward student loans. - Repayment/Forgiveness Period
Estimates how long repayment might take and how much could be forgiven under federal income-driven repayment plans. - Total Paid Over Life of Loan
Calculates the total amount paid if you continue on the income-driven plan until the end of the repayment or forgiveness period. - Potential Forgiveness Amount
Shows the portion of your loan that could be forgiven after the designated repayment period.
How the Calculator Works
The tool uses the following steps to estimate payments:
1. Input Your Loan Details
Enter your total loan balance and weighted average interest rate. These determine how much your loan accrues interest each month.
2. Enter Income Information
Your Adjusted Gross Income (AGI) is the primary factor. The calculator compares your income against the federal poverty line, adjusted for family size, to determine discretionary income.
3. Select Family Size
Family size affects the federal poverty threshold. Larger households have higher protected income, which reduces the amount considered for loan payments.
4. Choose Loan Type
- Undergraduate loans: Typically pay 5% of discretionary income per year.
- Graduate/Professional loans: Typically pay 10% of discretionary income per year.
5. View Results
After clicking Calculate, the tool generates:
- Monthly and annual payments
- Discretionary income
- Payment as % of income
- Forgiveness period
- Total paid over life of loan
- Potential forgiveness amount
This allows you to plan realistically and avoid financial surprises.
Example Scenario
Scenario:
- Total Loan Balance: $40,000
- Weighted Interest Rate: 5.5%
- AGI: $50,000
- Family Size: 3
- Loan Type: Graduate
Estimated Results:
- Monthly Payment: $250
- Annual Payment: $3,000
- Discretionary Income: $23,000
- Payment as % of Income: 6%
- Forgiveness Period: 25 years
- Total Paid Over Life: $75,000
- Potential Forgiveness: $0 (if fully repaid before forgiveness period)
This example shows how income-driven repayment can make monthly payments manageable, even with a significant loan balance.
Who Should Use This Calculator?
- Borrowers with federal student loans
- Low- or moderate-income earners
- Those exploring income-driven repayment plans
- Graduates or professionals with high loan balances
- Anyone considering switching repayment strategies
Benefits of Using the Calculator
- ✅ Quick, accurate estimates
- ✅ Personalized to your income, family size, and loan type
- ✅ Helps with budgeting and financial planning
- ✅ Shows potential forgiveness and total repayment amounts
- ✅ Provides clarity on affordable monthly payments
Important Notes
- The calculator provides estimates, not official loan servicer numbers.
- Payments may change if your income, family size, or employment status changes.
- Only applies to eligible federal student loans.
- Forgiveness amounts are projections based on current law and program rules.
Frequently Asked Questions (FAQs)
1. Can my monthly payment ever be $0?
Yes, if your discretionary income is zero or very low, your payment may be minimal or $0.
2. What is discretionary income?
Discretionary income is the portion of your income above a protected threshold based on federal poverty guidelines.
3. Does family size really impact payments?
Yes, larger families have higher protected income, which reduces the calculated monthly payment.
4. How is the forgiveness period determined?
It depends on your loan type: typically 20 years for undergraduate loans and 25 years for graduate/professional loans.
5. Does the interest rate affect the monthly payment?
Yes, it affects how much interest accrues, which can slightly alter payments and total paid.
6. Can this calculator predict exact loan forgiveness?
No. It provides an estimate based on current rules; actual forgiveness may differ.
7. What happens if my income increases?
Payments may rise, as discretionary income increases with higher earnings.
8. Can I use it for private loans?
No. This calculator is only for federal student loans under income-driven plans.
9. Why are undergraduate and graduate loans treated differently?
They have different repayment percentages (5% vs 10%) under federal rules.
10. Can I test multiple scenarios?
Yes. Changing income, family size, or loan type lets you explore different repayment outcomes.
11. Will this calculator work if I live in Alaska or Hawaii?
This version uses standard federal poverty lines. Adjustments may be needed for state-specific calculations.
12. How accurate is the total paid estimate?
It’s a projection based on current inputs and may vary over time with income and interest changes.
13. What is a weighted average interest rate?
It reflects the average interest rate across multiple loans, weighted by loan balance.
14. Can I refinance and still use this calculator?
Yes, if the new loan remains federal and eligible for income-driven repayment.
15. Is this tool free to use?
Yes, the Save Student Loan Calculator is completely free for borrowers.
Conclusion
The Save Student Loan Calculator is an essential tool for federal borrowers. By factoring in income, family size, loan type, and interest, it gives a clear estimate of what to expect each month. Using this calculator can help you plan your finances, avoid surprises, and explore potential loan forgiveness. Whether you are an undergraduate or graduate borrower, this tool simplifies student loan repayment planning and provides peace of mind.