How this number is made
The standard federal repayment plan, and most private student loans, are a fixed payment that amortizes the balance. Income-driven plans are a different page. This one is the standard payment.
- A typical federal standard term is 10 years. Private loans vary.
- If you have several loans, add the balances only if the rate is the same. Otherwise run them one at a time.
Formula
Payment = P × r(1+r)^n ÷ ((1+r)^n − 1).
Worked example
With the figures already in the form, standard monthly payment is $363.35.
Questions
Is this income-driven repayment?
No. Income-driven payments are a percent of discretionary income and may not amortize the loan. That page is separate.
Does it include a new loan’s fee?
A capitalized fee belongs in the balance. A fee you already paid in cash does not.