Student Loan Calculator 2026
Federal student loans in the United States carry fixed rates of 6.53% (undergraduate) and 8.08% (graduate) for the 2025-2026 academic year, according to the Department of Education. The standard plan offers fixed payments over 10 years, but options include the graduated plan (increasing payments), extended plan (up to 25 years for balances over $30,000), and income-driven plan (based on your income with forgiveness after 20 years). This calculator compares all four plans side by side so you can choose the best option.
Frequently Asked Questions
What are the federal student loan interest rates for 2025-2026?
For the 2025-2026 academic year, federal rates are: 6.53% for Direct Subsidized and Unsubsidized undergraduate loans, 8.08% for Direct Unsubsidized graduate loans, and 9.08% for Direct PLUS loans (parent and graduate). These rates are fixed for the life of the loan and are based on the 10-year Treasury note auction plus a statutory margin.
Which repayment plan is best for me?
It depends on your situation. The standard plan (10 years) has the lowest total interest cost. The graduated plan starts with low payments that increase every 2 years — ideal if you expect your income to grow. The extended plan reduces monthly payments but you pay more interest over 25 years. The income-driven plan adjusts payments to your income and offers forgiveness after 20 years, but may result in paying more interest if your income is high.
What is income-driven repayment and how does forgiveness work?
Income-driven plans cap your monthly payment at 10% of your discretionary income (annual income minus 150% of the federal poverty level, divided by 12). After 20 years of qualifying payments, any remaining balance is forgiven. The forgiven amount may be taxable as income, although under certain IRS rules it may be exempt through 2025.
Can I change my repayment plan after starting?
Yes, you can change your repayment plan at any time at no cost by contacting your loan servicer. When switching to an income-driven plan, your forgiveness timeline begins from your first qualifying payment. Keep in mind that switching to a longer-term plan may reduce your monthly payment but increase the total interest paid.
What is the difference between subsidized and unsubsidized loans?
With Direct Subsidized loans, the government pays the interest while you're in school (at least half-time), during the grace period, and during deferment. With Direct Unsubsidized loans, you're responsible for all interest from disbursement. Both have the same rate (6.53% for undergraduate), but subsidized loans cost less over time because interest doesn't accrue while you study.