On the other, their interest rates are relatively low - compared to an auto loan or credit card, and they keep their value for a more extended period.
On the one hand, both liabilities involve considerable amounts of debt that take an extended time to repay. For this reason, it is crucial to conduct a thorough review and analysis before taking out such a financial transaction.Īs for the rationale behind the borrowing, student loans are comparable to mortgage loans, in that they are generally considered "good debt". The essential difference between this kind of academic, financial support, compared to scholarships or grants, is that student loans, in general, must be repaid. Student loans are a form of financial aid used to help students access higher education, such as an undergraduate or a graduate/professional program. In case you want to estimate how long it will take to pay back your student loan, check out our student loan payment calculator and student loan repayment calculator. By employing this calculator with the data of a few loans you are eying, we can hopefully help you select the best student loan for your needs. Also, you can read some bits of advice on how to apply for a student loan, how to get a student loan for college, and you can learn what student loan deferment is and answer the question "How do student loans work?"īesides, you can also find out about student loan forgiveness programs and national student loan data systems. Through the following sections, you can read about government student loans (or federal student loans), for example, the Federal Perkins Loan Program, and we show you its advantages compared to private student loans. This tool is so specific you can use the student loan calculator to assess your in-school expenses, and make a financial projection for the payback period. Principal: The principal is the amount you borrow before any fees or accrued interest are factored in.The student loan calculator is an advanced device that allows you to create a comprehensive review of your degree's funding plan, from when you file the loan application until you're finally done paying off the debt.Your loan’s principal, fees, and any interest will be split into payments over the course of the loan’s repayment term. Repayment term: The repayment term of a loan is the number of months or years it will take for you to pay off your loan.You can use Bankrate’s APR calculator to get a sense of how your APR may impact your monthly payments. APR: The APR on your loan is the annual percentage rate, or cost per year to borrow, which includes interest and other fees.
This rate is charged on the principal amount you borrow.