1. What is the Lifetime Student Loan Cost?

The lifetime cost represents the total amount you'll pay for your student loans over the entire repayment period, including both principal and interest. It helps borrowers understand the full financial impact of their loans.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( PMT \) — Monthly payment amount in USD
• \( n \) — Total number of monthly payments

Explanation: This calculation shows the total repayment amount under standard repayment plans. For income-driven repayment plans, additional factors may affect the total cost.

3. Importance of Lifetime Cost Calculation

Details: Understanding your total repayment amount helps with financial planning, comparing repayment options, and making informed decisions about loan consolidation or refinancing.

4. Using the Calculator

Tips: Enter your monthly payment amount and the total number of months in your repayment term. For accurate results, use your actual loan payment information.

5. Frequently Asked Questions (FAQ)

Q1: Does this include loan forgiveness amounts?
A: No, this calculates total payments if you pay the loan to completion. For forgiveness programs, the total may be less.

Q2: How does this differ from principal amount?
A: The principal is what you borrowed. Total cost includes all interest paid over the life of the loan.

Q3: Should I include extra payments?
A: For standard repayment, use your scheduled payment. For plans with extra payments, adjust accordingly.

Q4: How accurate is this for variable rate loans?
A: Less accurate for variable rates, as future rate changes aren't accounted for.

Q5: What if my payments change over time?
A: For income-driven plans with changing payments, this provides only an estimate.