1. What is the FedLoan Payment Calculator?

The FedLoan Payment Calculator helps estimate monthly payments for federal student loans serviced by FedLoan Servicing. It uses the standard loan payment formula to calculate your fixed monthly payment amount.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( P \) — Principal loan amount (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)
• \( PMT \) — Monthly payment amount (USD)

Explanation: The formula calculates the fixed payment amount required to pay off a loan over a specified term, accounting for both principal and interest.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting, comparing repayment options, and planning for student loan repayment.

4. Using the Calculator

Tips: Enter the principal amount in USD, annual interest rate as a percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include loan fees?
A: No, this calculation doesn't include any origination fees or other loan charges that may apply.

Q2: What if I have multiple loans?
A: Calculate each loan separately, then sum the payments for your total monthly obligation.

Q3: How accurate is this calculator?
A: It provides a close estimate, but your actual payment may vary slightly due to rounding or specific loan terms.

Q4: Can I use this for other types of loans?
A: While the formula works for any fixed-rate loan, this calculator is optimized for federal student loans.

Q5: What repayment plans does this apply to?
A: This calculates payments for the Standard Repayment Plan. Income-driven plans have different calculations.