– Best Student Loan Calculator –
Best Student Loan Calculator: Student loan calculators are designed to help you compare repayment options, payoff strategies, refinancing savings, tax deductions, and more.
This article fully highlights the top best Student Loan calculators and how their calculated.
Here are the 9 best student loan calculators
1) Student Loan Prepayment Calculator
You use this student loan prepayment calculator to determine how much you will save by repaying your student loans early.
The student loan payment calculator is a simple tool that allows borrowers to see what their monthly payments will be. Even after graduation based on their loan amount, interest rate, and loan term.
They are significantly from borrower to borrower, but managing student loan debt can be done effectively through a variety of strategies.
Student Loan Payments Calculation?
Student loan payments are calculated based on the details of your loan. This includes how long you plan to be in repayment on the loan, the interest rate you received, and the total amount you borrowed.
The higher your interest rate and your balance, the higher your monthly payment will be. In addition, the shorter your repayment term, the higher your monthly payment will be and vice-versa.
In the first several years of a student loan repayment term, you pay more toward interest accrued than you do the principal balance. However, as you continue to make the same monthly payment, your principal balance starts to go down quicker.
2) Income-Based Repayment (IBR) Calculator
Unable to afford your monthly payments? Use this IBR calculator to determine your monthly payment options under the Department of Education’s income-based repayment plan.
How IBR Works
The plan allows student loan borrowers to cap their monthly student loan payments at 10% of their discretionary income. For borrowers who already had federal student loans prior to July 1, 2014. The monthly payments under IBR are capped at 15% of discretionary income.
In either case, the payment cannot be more than what the minimum payment would be under the Standard 10-Year Repayment Plan. Additionally, borrowers are able to lower their monthly payments because the repayment term is extended well beyond the standard 10-year plan.
You may have 20 or 25 years to repay your loans under IBR, and the remaining loan balance is forgiven at that time, so long as you remain on time with your payments throughout the plan. You can stay on IBR for as long as you want.
3) Student Loan Refinance Calculator
Use this student loan refinancing calculator to determine how much money you can save through student loan refinancing and calculate your new monthly payment after refinancing.
When to Consider Refinancing Your Student Loans
If you are thinking about refinancing your student loans, you have several things to consider before deciding whether you should or not.
- You Will Receive a Lower Interest Rate. First, a refinance usually only makes sense if you are offered a lower interest rate than what is on your current loans. If not, it is likely not worth going through the process.
- You Meet the Eligibility Requirements. Also, consider if you will be approved for refinancing. Private lenders offering student loan refinancing want to know that they are taking on an acceptable amount of risk with a new borrower. This means you need to have strong credit, a high credit score, and in some cases, meet minimum income requirements. Without these qualifications, you are likely to not be eligible for a refinanced student loan without the help of a co-signer.
4) Student Loan Interest Tax Deduction Calculator
Student loans are a necessary part of earning a college degree for millions of people. Without access to affordable financing, many would be unable to pursue their goals of getting the job they want based on the education they received.
Student loan borrowers, both federal and private, who meet certain requirements may qualify for a student loan interest tax deduction each year.
How to Qualify for the Student Loan Interest Deduction?
Not everyone will qualify for the student loan interest deduction tax credit. The IRS has laid out specific rules as to who is eligible based on the following factors:
- Your modified adjusted gross income cannot be more than $80,000 as a single filer, or $160,000 as a married filer. The total amount of the deduction begins to gradually phase out starting at a modified adjusted gross income of $65,000 for single individuals, and $130,000 for married couples.
- Must not be claimed as a dependent on anyone else’s tax return for the year
- You must have student loans that are in repayment
- You must have made interest payments for your student loans throughout the year
Additionally, the student loan interest deduction is only available up to $2,500 per year for qualified student loans.
As an example using the student loan interest deduction calculator, an individual taxpayer who earns $40,000 in income for the year and paid $1,000 interest on student loans receives a deduction of $1,000.
5) Payoff Student Loans or Invest Calculator
Should you invest or pay down your student loans? Should you save for retirement or pay down your student loans? You can use this payoff vs. invest calculator to find out!
The pay off student loans or invest calculator below can offer some guidance on which to prioritize when it comes to investing or paying off student debt based on your specific financial circumstances.
Deciding Whether to Pay Off Student Loans or Invest
- Always Pay the Minimum. When you are making a decision about adding monthly contributions to student loan debt balances or retirement savings or other investments, it is crucial to know what you can and cannot do.
- Build an Emergency Fund. In addition to understanding and meeting your minimum monthly payment requirements. You have to consider your need for an emergency fund. Building up savings is an essential part of any financial plan. It allows you to cover financial emergencies, like medical bills, car repairs, or other large, unexpected expenses, without having to run into debt.
- Early Debt Repayment Versus Investing. Borrowers who have federal loans with a relatively low interest rate may be better served by continuing monthly payments as planned and investing in a retirement savings account that generates more of a return.
- The Emotional Element. Having extra money each month can feel like you’ve won the lottery of personal finance, especially when you have debt you want or need to pay off or investments you want to make. However, you must consider the emotional element of taking either approach before doing so. situation.
6) Student Loan Payment Calculator
Taking on student loan debt is a requirement for many individuals pursuing a college degree.
The ease of receiving student loans from the federal government is beneficial but it also creates situations where students take on more debt than they can handle in the future.
7) Student Loan Comparison Calculator
With a bevy of student loan options, those heading to college have a lot of factors to consider. Therefore they choose which lender to work with within a partnership that will likely last at least a decade.
In addition, those who have already graduated may have a variety of student loan refinancing options to choose from.
To use loan comparison calculator, simply enter your loan balance and the interest rates that accompany each optional term. Then, the calculator will populate your expected monthly payments, as well as the total interest paid, for each borrowing scenario.
8) Deferment & Forbearance Calculator
Many students who have difficulty paying their student debt often wish they could pause their student loan payments for a while.
The idea of taking some time off from having to pay off your student loans might sound like a fantasy, but if your loans are through the U.S. Department of Education, you might qualify for forbearance or deferment.
The Department of Education offers all federal student loan borrowers deferment and forbearance benefits. Use this calculator to compare the two options and to learn about the available programs.
9) Weighted Average Interest Rate Calculator
Use this calculator to determine the combined interest rate on all your student loans. You’ll need that average to estimate your loan payments under federal loan consolidation programs or to compare student loan refinancing offers.
When using a student loan calculator, you should be ready to take action on your repayment.
Student loan calculators are great tools that can help you save on your debt. Just make sure you choose a path that you can afford. That will also ultimately help you save on your overall costs.
We hope this article was useful and educative, do well to share these messages with friends and loved ones. If you have a question, kindly drop your comments below.