Student Loan Payoff Planner — Federal & Private Loan Calculator
See exactly when your student loans will be paid off and how much interest you can save.
Your debts
Debt name
Balance
Rate
Min pay
Amount above minimums — applied to priority debt
Avalanche
8yr 7mo
$16,054 interest
Snowball
8yr 10mo
$17,600 interest
Debt free in
8yr 7mo
Total interest
$16,054
Interest saved
$11,639
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Assumes fixed interest rates and minimum payments. Actual payoff may vary. For educational purposes only.
Student Loans payoff — what you need to know
The average federal student loan borrower in 2026 carries $38,290 in debt across multiple loan types with different interest rates — Direct Subsidised and Unsubsidised at 6.53%, Grad PLUS at 9.08%, and private loans ranging from 5% to 16% depending on credit score. The standard 10-year repayment plan costs between $12,000 and $18,000 in total interest on a $40,000 balance. Extra monthly payments targeted at the highest-rate loan (typically Grad PLUS) can cut years off the timeline and save thousands.
Interest rates for Student Loans (2026)
Federal student loan rates for 2025–2026: Direct Subsidised and Unsubsidised (undergraduate) 6.53%, Direct Unsubsidised (graduate) 8.08%, Direct PLUS (graduate/parent) 9.08%. Private loan rates vary by lender and credit score: 5–7% for excellent credit (750+), 8–12% for good credit, 12–16%+ for fair credit. Use the Grad PLUS rate (9.08%) as the avalanche target if you have this loan type.
Avalanche vs snowball — which works better for Student Loans?
| Strategy | Best when | Trade-off |
|---|---|---|
| 🏔️ Avalanche | Rate differences between debts are large (5%+) | Saves the most interest — fewest early wins |
| ⛄ Snowball | You need quick wins to stay motivated | Higher total interest — fastest first payoff |
Tips specific to student loan payoff
- 1
Log in to StudentAid.gov to see all your federal loan balances, interest rates, and servicer information before entering numbers in this calculator.
- 2
If you work for a government agency or qualifying non-profit, check PSLF eligibility before aggressively paying down federal loans — 120 qualifying payments on an income-driven plan leads to tax-free forgiveness.
- 3
Employer Section 127 benefit: as of 2026, employers can contribute up to $5,250/year tax-free to employee student loan payments. Check with HR before making any extra payments — this is free money.
- 4
Paying during the 6-month grace period after graduation goes entirely to principal, before any interest capitalises. Even $500 during this period is the highest-leverage student loan payment you can make.
- 5
For private loans specifically, refinancing to a lower rate makes sense if your credit score has improved significantly since graduation and you have stable income — but never refinance federal loans (you permanently lose IDR, PSLF, and deferment protections).
Other debt types
All Debt Types
Mix of any debt type — credit cards, loans, medical bills
Credit Cards
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Personal Loans
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Medical Debt
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Student loan payoff — frequently asked questions
What are the federal student loan interest rates for 2026?
For the 2025–2026 academic year: Direct Subsidised and Unsubsidised loans for undergraduates: 6.53%. Direct Unsubsidised for graduate students: 8.08%. Direct PLUS loans for graduate students and parents: 9.08%. These rates are fixed for the life of the loan — they do not change. Private loan rates vary by lender and credit profile.
Should I pay off student loans or invest?
If your student loan rate is above 7%, paying off early typically outperforms expected after-tax investment returns. Below 5%, investing in a diversified portfolio earning a historical 7% real return is likely more valuable. Between 5–7% is genuinely uncertain — the psychological value of being debt-free often tips the decision. Always capture your full 401(k) employer match first (it is a guaranteed 50–100% return) before extra loan payments.
Does avalanche or snowball work better for student loans?
For most student loan borrowers, avalanche wins — particularly if you have Grad PLUS loans at 9.08% alongside Direct Unsubsidised at 6.53%. The rate differential is meaningful over a 10-year payoff. Snowball makes more sense when you have several small private loans from a single semester that can be eliminated quickly, freeing cash flow for the larger balances.
Can I pay off student loans early without penalty?
Yes. Federal student loans have no prepayment penalty — any extra payment goes directly to principal on the loan you specify. Private loans also rarely carry prepayment penalties, but check your loan agreement to confirm. Always instruct your servicer to apply extra payments to principal on the highest-rate loan (not as an advance on next month's payment) — otherwise, servicers often default to "paid ahead" status.
What is income-driven repayment and should I use it?
Income-driven repayment (IDR) plans cap federal student loan payments at 5–10% of discretionary income. After 20–25 years, the remaining balance is forgiven (taxable income unless you qualify for PSLF). IDR is most beneficial for borrowers pursuing PSLF, those with high debt-to-income ratios, and those with variable or uncertain income. If your goal is to pay off loans as fast as possible and you have stable income, the standard repayment plan or aggressive extra payments will cost less in total interest.