Student Loan Repayment Calculator

Student Loan Repayment: Choosing the Best Strategy

Student loan debt is a reality for millions of graduates in both the US and Canada. The average US student graduates with about $35,000 in debt, while Canadian students average $26,000-$28,000. Choosing the right repayment strategy can save you thousands in interest and years of payments. Our Student Loan Repayment Calculator compares standard, accelerated, and income-driven plans side by side.

US Federal Student Loan Repayment Plans

Standard Repayment: Fixed payments over 10 years. This is the default plan and the fastest way to pay off loans, but monthly payments may be higher. Income-Driven Repayment (IDR): Payments are 10-20% of discretionary income, with forgiveness after 20-25 years. Plans include SAVE (most favorable), PAYE, IBR, and ICR. Public Service Loan Forgiveness (PSLF): After 120 qualifying payments (10 years) while working for a qualifying employer (government, nonprofits), the remaining balance is forgiven tax-free. Extended Repayment: Lower payments over up to 25 years, but significantly more total interest.

Canadian Student Loan Repayment

Canadian federal student loans offer a floating rate (prime + 0%) or fixed rate (prime + 2%). The Repayment Assistance Plan (RAP) reduces payments based on income, with forgiveness after 15 years. Interest on federal student loans is no longer tax-deductible as of 2023, making accelerated repayment more attractive. Provincial loan terms vary by province.

Accelerated Payoff Strategies

The extra payment method: Even $50-$100 extra per month can save thousands in interest and cut years off your repayment. Refinancing: If you have good credit and stable income, refinancing to a lower rate can significantly reduce total interest. Be cautious about refinancing federal loans into private loans — you lose access to income-driven plans and forgiveness programs. The debt avalanche: If you have multiple loans, pay minimums on all and put extra money toward the highest-interest loan first. Employer assistance: Some employers offer student loan repayment benefits (up to $5,250/year tax-free in the US).