📚 Understanding Student Loans

🔢 How Student Loan Payments Work:

Student loan payments are calculated using amortization, meaning each payment covers both interest and principal. Early payments apply more to interest, while later payments apply more to principal.

📋 Repayment Plan Options:

• Standard: Fixed payments for 10 years
• Extended: Lower payments over 25 years (more interest)
• Graduated: Payments start low and increase every 2 years
• Income-Driven: Payments based on your income (10-25% of discretionary income)

💡 Money-Saving Tips:

• Making extra payments reduces total interest paid
• Refinancing may lower your interest rate
• Some professions qualify for loan forgiveness programs
• Interest may be tax deductible

⚠️ Important Considerations:

This calculator provides estimates only. Actual loan terms may vary based on your lender, repayment plan selection, and whether your loans are federal or private.