Private Student Loan Calculator
Private Student Loan Payment
Calculate payments for a private student loan
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Formula
Monthly = L[r(1+r)^n]/[(1+r)^n - 1]. Deferred balance = L x (1 + r/12)^school_months.
Frequently Asked Questions
How do private student loans differ from federal loans?
Private student loans are from banks and lenders, not the government. They typically have higher rates, require a credit check or cosigner, lack income-driven repayment options, and don't qualify for federal forgiveness programs.
Should I choose fixed or variable rate?
Fixed rates provide predictable payments but start higher. Variable rates start lower but can increase over time. If you plan to pay off quickly (5-7 years), a variable rate may save money. For longer terms, fixed is generally safer.
What is interest capitalization?
When you defer payments during school, unpaid interest is added to your principal balance (capitalized). This means you pay interest on interest, increasing your total cost significantly. Interest-only payments prevent this.
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