It’s important to use a student loan calculator to estimate your monthly payments and see how much interest you’ll be charged for your loans, even when it comes to student loan refinance programs. If you don’t know how much interest your student loans are paying, you can easily calculate it using the Student Loan Interest Estimator. Here are some of the most common interest rates and what they mean.
2018 Rates and Amounts
There are several different types of student loans available, which can either be paid on a monthly or a lump sum basis. Interest rate varies depending on your loan type and the program youre working towards, and each type of student loan comes with different benefits and drawbacks.
Generally speaking, for students in good financial standing, interest rates will be high. This is because youre getting a higher interest rate than the typical loan rates offered by banks, so its a good deal if you’re able to qualify. Since interest rates are fixed, lenders cant legally increase their rates beyond what they would normally do.
For instance, the interest rate on Stafford Loans is 6.8% for a standard loan, 6.9% for Grad PLUS loans, and 7.9% for Consolidation loans. For loans for which the loans are at least 6.5% interest, the interest rate on Stafford Loans is 6.85%, and for loans of 6.8% or more, the interest rate is 7.25%. Loans for which the loans are at least 6.5% interest may qualify for a deferment or forbearance, which lowers the interest rate while deferring payments for up to 12 months.
In general, Stafford loans have the highest interest rates, and Grad PLUS loans have the second-highest interest rates. Consolidation loans have the lowest interest rates, and Direct Loans have the lowest interest rates on a monthly basis, if the loan is paid on a monthly basis.
Overall, the interest rate will vary according to your loan type and the fact that your loans are getting new loans or are consolidated with another loan.
2018 Stafford Loan Rates
Standard Loans are some of the most popular types of student loans, and the student loan amount youll pay is limited to $5,500 or $6,500 if you’re a full-time student at a public school or $7,500 or $9,500 if youre a full-time student at a private school.
Your average student loan payment over the course of 10 years is projected to be $2,209.55.
The average student loan payment over the course of 10 years is projected to be $2,209.55. The average monthly payment on a standard loan with a 5-year repayment period is $244, and the average monthly payment on a standard loan with a 10-year repayment period is $292.
Variable Rate Loans are similar to Stafford Loans, except that your student loan payment will be adjusted each year to keep up with inflation, so that you’ll only have to make payments for a maximum of 25 years. Your average student loan payment over the course of 10 years is projected to be $2,261.59.