Loan Repayment Examples and Calculations

Loans accumulate over the years you attend school. Once you have an idea of the total amount of federal student loans you may be taking, you can estimate your monthly payment amounts.

Loan Repayment Examples

Below are samples of an undergraduate and graduate student who borrow the maximum amounts over five years. The monthly payments are estimates. A servicer, contracted by the Department of Education, will notify borrowers when their monthly payments are due and will advise them of the exact amount.

Undergraduate student

An undergraduate student completes a degree in four years and borrows the maximum per year.

Freshman:
Subsidized or unsubsidized Direct Loan$3500 
Unsubsidized Direct Loan$2000
Total borrowed$5500
Sophomore:
Subsidized or unsubsidized Direct Loan$4500 
Unsubsidized Direct Loan$2000
Total borrowed$6500
Junior:
Subsidized or unsubsidized Direct Loan$5500 
Unsubsidized Direct Loan$2000
Total borrowed$7500
Senior:
Subsidized or unsubsidized Direct Loan$5500 
Unsubsidized Direct Loan$2000
Total borrowed$7500
Total borrowed for five years$27,000

Calculator results:

Interest Rate:6.8 %
Loan amount:$27,000
Repayment PlanTerm
(in months)
Initial Monthly PaymentsTotal Payments (Interest + Principal)
Standard120$ 310.72$ 37,286.40
Extended - This payment plan is only available for amounts greater than $30,000.
Graduate (see note below)120$ 213.35$ 39,300.01

Graduate student

A graduate student accumulates $27,000 in Direct Loans as an undergraduate and continues to borrow as a graduate student.

Graduate:
Unsubsidized Direct Loan$20,500
Undergraduate:
Prior undergraduate debt$27,000 
Total borrowed for five years$47,500

Calculator results:

Interest Rate:6.8 %
Loan amount:$47,500
Repayment Plan Term
(in months)
Initial Monthly PaymentsTotal Payments (Interest +
Principal)
Standard120$ 546.63$ 65,595.60
Extended - fixed300$ 329.68$ 98,904.00
Extended - graduated300$ 269.17$ 107,131.71
Graduate (see note below)120$ 375.33$ 69,138.90

Note: This an estimated monthly repayment amount for the first two years of the term and total loan payment. The monthly repayment amount will generally increase every two years based on the graduation factor in the graduated repayment rules.