This calculator helps you understand how your student loans may affect your future financial health after graduation. It shows you how much of your future paycheck you will need to use to pay off your student loans and how long it will take to repay. The default result represents a recent graduate with an average starting salary and student loan balance. To get personalized results, just add your loan and expected salary details.
Your salary after you graduate is an important factor in how well you will be able to cover your loan payments. We've set the expected salary to $38,000 -- the median early career annual salary for graduates with bachelor's degrees nationwide. You can change it to the salary you expect (or hope) to earn, or tell us your major and we'll estimate a starting salary for you. The green bar graphic to the left also shows your net salary, the amount left over after taxes are deducted.
Your monthly student loan payment is calculated using the standard 10-year repayment plan and the current interest rate for federal loans for undergraduates. We've set the loan balance to $22,743, the average federal loan balance for new graduates nationwide. You can change the loan balance, term and interest rate to match your loan details, or tell us the college you plan to attend and we'll estimate your loan balance.
After you graduate, how much of your salary do you want to spend on student loan payments? Some advisors suggest that student loan payments not exceed 10-15 percent of a new graduate's starting salary -- otherwise it could lead to difficulty making loan payments and covering other expenses. The federal government's various income-based student loan repayment plans set the payment at somewhere between 10 and 20 percent of discretionary income. We've set the target to 12 percent, but you can raise or lower it and see how that changes the salary you'll need to meet your target.
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We need to know this to calculate your state income tax and net salary.
The salary by major data includes median salaries for early career graduates, aged 22-27, with a bachelor's degree only. Your actual starting salary could be higher or lower than the median, depending upon your individual circumstances.
We've set the loan balance to $22,743, the national average federal loan balance for new graduates. To use the average for new graduates at the college you plan to attend, select "Use the Average at a Specific College" and enter the name of the college below. Your actual loan balance may vary from the average, depending upon your individual circumstances. Select "Use the Most Undergraduates Can Borrow" to set your expected federal loan balance to $31,000. (Under certain circumstances -- if the student is not considered a dependent or the student's parents are unable to borrow PLUS loans -- an undergraduate can borrow up to $57,500, but the maximum is $31,000 for most undergraduates.) If you know how much you expect to borrow, choose "Use Your Own Loan Balance" and enter the amount below.
Enter your expected federal loan balance.
This is the length of time during which you will be expected to make monthly payments to repay your student loan in full. Of course, if you pay more than the minimum payment each month, you can repay your loan sooner. We've set the loan term to 10 years -- 120 equal monthly payments -- the typical term for repaying federal student loans under the standard and graduated repayment plans.
When you repay your loan, you will pay back the original amount you borrowed plus interest -- the cost of borrowing the money. Interest is calculated as a percentage of the outstanding (unpaid) loan balance. We've set the annual interest rate to 3.76%, which is the rate for new federal student loans borrowed by undergraduates during the 2016-17 academic year. Interest rates for new federal loans for the following academic year are set each year on July 1.
Private education loans, also known as alternative education loans, are loans for college offered by private lenders, such as banks and credit unions. If you are like most undergraduates, you won't use private loans. Only about 30 percent of new graduates have private loans. Financial aid advisors typically recommend that students who need to borrow should take out federal student loans first because they are generally less expensive than private loans and offer a variety of benefits -- such as flexible repayment and loan forgiveness, which are not usually available through private loan programs.
Enter your expected private education loan balance.
This is the length of time during which you will be expected to make monthly payments to repay your student loan in full. Repayment terms for private education loans vary depending upon the loan balance and other factors, but typically range from five to 15 years.
When you repay your loan, you will pay back the original amount you borrowed plus interest -- the cost of borrowing the money. Interest is calculated as a percentage of the outstanding (unpaid) loan balance. Interest rates for private education loans vary greatly, but in general they are higher than for federal loans. Typical annual interest rates for private loans for undergraduates range from approximately 2.5% to 12%, depending upon the lender, term length, type of interest rate (variable or fixed), the borrower's credit history, and other factors.

Student Loan Repayment & Affordability Calculator

Gross Monthly Salary
$297

TAXES

Taxes

NET  SALARY

Net  Salary
$297

Monthly Loan Payment
$297

  • YOUR EXPECTED SALARY
    $0
    Gross Monthly
    $0
    Annual
  • YOUR LOAN
    $0
    Monthly Payment
    $0
    Balance
  • YOUR LOAN REPAYMENT TARGET
    Of Monthly Salary

Your monthly loan payment of $0 is 0% of your expected monthly gross salary.

For your loan payment to be at or below 0% of your expected monthly gross salary, you will need an annual gross salary of at least $0.

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Federal Loans Private Loans Total
Loan Balance $0 $0 $0
Monthly Payment $0 $0 $0
Total Amount of All Payments $0 $0 $0
About the Student Loan Repayment & Affordability Calculator

This tool is intended to help you understand how student loan debt could affect your future financial health after graduation. The results are estimates based on information you provide and certain assumptions, described below, and are provided as a guideline only. The financial information and assumptions are general in nature and may not apply to your personal situation. Don't decide whether to borrow or how much to borrow solely on the basis of the results or other information provided here. Talk it over with your family, financial aid representatives, and a financial advisor before acting on such information.

National Starting Salary Data: The salary by major data includes median salaries for early career graduates, aged 22-27, with a bachelor's degree only. Data source: Federal Reserve of New York report The Labor Market for Recent College Graduates, which is based on data from the U.S. Census Bureau, American Community Survey (IPUMS).

Net Salary: Net salary is calculated by subtracting estimated Federal and State income taxes and FICA tax (Social Security and Medicare) from the gross salary. FICA is calculated using the fixed FICA rate for salaries of $118,500 and below, even if the salary is higher. Federal and state income tax are calculated based on a single person without dependents taking the standard deduction and single personal exemption. State income tax varies by state, and is calculated based on the state selected. If "Other" is selected, no state income tax is deducted.

National Average Federal Student Loan Balance: National average per-borrower cumulative principal borrowed through Federal loan programs by the last graduating undergraduate class at institutions offering bachelor's degrees that reported this data. Includes only Federal Perkins and Federal Stafford Subsidized and Unsubsidized loans made to students who borrowed while enrolled at an institution. Excludes transfer students, students who did not graduate with a bachelor's degree, and parent loans. Approximately 40 percent of bachelor's degree granting institutions reported this data. Data source: Peterson's Undergraduate Financial Aid Database, copyright © 2016 Peterson's, A Nelnet company. All rights reserved.

Federal Student Loan Balance by College: Average per-borrower cumulative principal borrowed through Federal loan programs by the last graduating undergraduate class. Includes only Federal Perkins and Federal Stafford Subsidized and Unsubsidized loans made to students who borrowed while enrolled at the institution. Excludes transfer students, students who did not graduate with a bachelor's degree, and parent loans. Data source: Peterson's Undergraduate Financial Aid Database, copyright © 2016 Peterson's, A Nelnet company. All rights reserved.

Private Student Loans: Percentage of all bachelor's degree recipients graduating with private loans. Data source: The Institute for College Access & Success report Student Debt and the Class of 2014, based on data from the U.S. Department of Education, National Postsecondary Student Aid Study (NPSAS) 2012.

Loan Repayment Summary: Repayment calculations are based on the loan balance, loan term, and interest rate information you provide. A standard loan amortization formula is used to determine a fixed monthly payment which, when paid over the specified period of time, will total an amount equal to the initial loan principal (original amount borrowed) and interest owed and will result in full repayment at the end of the term. The repayment calculation assumes the interest rate is fixed for the length of the loan and that interest is paid as it accrues and is not added to the principal.