Simple User Guide

What is this calculator for?

This calculator helps you understand how interest builds up on your student loans during school, after graduation, and during repayment. It shows you how different payment strategies can save you money.

Getting Started

1. Select your loan type at the top (Subsidized, Unsubsidized, or Private).
2. Enter your loan amount and interest rate.
3. Adjust the sliders for your school period, grace period, and repayment term.
4. Click the Calculate Interest button to see your results.

Understanding Your Inputs

Loan Type:

• Subsidized: Government pays interest while you’re in school.
• Unsubsidized: Interest builds up while you’re in school.
• Private: Usually higher interest rates than federal loans.

Loan Amount: The total amount you’re borrowing.

Interest Rate: The annual percentage rate on your loan.

School Period: How many years you’ll be in school.

Grace Period: How many months after graduation before you must start repayment (typically 6 months).

Repayment Term: How many years you’ll take to pay back the loan.

Payment During School/Grace: Any monthly amount you plan to pay while in school or during the grace period.

Advanced Options (Optional)

Click “Advanced Options” to set:

• Disbursement Frequency: How often you receive loan funds (semester, annual, etc.)
• Interest Capitalization: When interest gets added to your principal amount

Understanding Your Results

After calculating, you’ll see:

• School Period Interest: Interest that builds up while you’re in school.
• Grace Period Interest: Interest that builds up during your grace period.
• Interest at Repayment Start: Total interest when you begin repayment.
• Total Loan Balance: Your loan amount plus any capitalized interest.

Exploring the Tabs

Interest Breakdown: Shows how your balance changes over time.

Interest Projection: Shows how much interest and principal you’ll pay each year.

Payment Comparison: Compares different payment strategies:

• No payments during school
• Interest-only payments
• Your payment plan

Tips for Using the Calculator

1. Try different scenarios by changing your payment amount during school.
2. Toggle between tabs to understand different aspects of your loan.
3. Check the Key Takeaways section for personalized insights about your loan.
4. Switch between light and dark mode using the button in the top right.

Why This Matters?

Understanding how interest works on your student loans can help you:

• Make informed decisions about borrowing.
• Develop effective repayment strategies.
• Potentially save thousands of dollars over the life of your loan.

Remember: Even small payments during school can significantly reduce your total interest costs!