Student Loan Calculator for the US — Federal vs Private Loans

Federal vs private student loans

Always max out federal student loans (subsidised first, then unsubsidised) before considering private loans. Federal loans have fixed rates, income-driven repayment options, and forgiveness programs. Private loans have none of these protections.

Income-Driven Repayment (IDR)

If your federal loan payment would be a hardship, apply for IDR — your payment is capped at 5%–10% of discretionary income. After 10–25 years of payments, the remaining balance is forgiven (though the forgiven amount may be taxable).

Student Loan interest deduction

You can deduct up to $2,500 of student loan interest per year. The deduction phases out at $75,000–$90,000 income (single) or $155,000–$185,000 (MFJ) in 2025.