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How to use the Student Loan Calculator
- 1Enter your loan balance and interest rate.
- 2Choose a repayment term.
- 3Add an extra monthly payment to see the interest you save.
Federal student loan rates for 2026–27
Federal Direct loans first disbursed between July 1, 2026 and June 30, 2027 have fixed rates for the life of the loan. Older loans keep the rate from the year they were disbursed.
| Loan type | Fixed rate |
|---|---|
| Undergraduate (subsidized and unsubsidized) | 6.52% |
| Graduate unsubsidized | 8.07% |
| PLUS loans (parents and graduate students) | 9.07% |
Paying off student loans faster
Extra payments go straight to principal once interest is covered, so even small amounts help: on a $35,000 balance at 6.52%, an extra $100 a month saves several thousand dollars in interest. Federal loans have no prepayment penalty. Ask your servicer to apply extra payments to the highest-rate loan first.
Sources & review
Figures last checked in October 2026 against the official sources below. Fixed-rate amortization with optional extra payments.
Results are estimates for general information, not financial, tax or legal advice. How we check our tools
Frequently asked questions
What is the standard repayment plan?
A fixed payment over 10 years for most federal loans. Longer terms lower the monthly payment but increase the total interest.
Should I pay off student loans or invest?
A common approach: get any employer 401(k) match first, keep an emergency fund, then pay extra on loans with rates above about 6–7% while investing if your rates are low.
Can I deduct student loan interest?
Yes, up to $2,500 a year of interest if your income is below the IRS limits, even if you take the standard deduction.