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School Loan Calculator (Calculating Your Debt)
One part of consolidation loans that seems to be universal, especially online, is the school loan calculator. You use the calculator estimate your monthly installments for the consolidation loan repayments you will be making. In addition to being able to calculate your installment amounts, many websites allow you to estimate your monthly expenses along with the loan installment amount to get an idea of how much you need to earn to cover your post graduation finances. Getting an idea of what your budget will be like after you enter the ‘real world’ can help you get one foot out of the campus bubble and into life.
Using the Calculator
Most of the school loan calculator programs you will find online are set up pretty much the same. These simple instructions will get you through the process with a bit of a better understanding about how the loans are calculated.
- First, enter the principle (total loan amount) that you are calculating installments for. Always enter the number without commas.
- Next, you will need to enter the interest rate before the repayment period, as a percentage. All interest rates on federal loans are capped at 8.25%.
- After that, you need to give the number of months before repayment. This is the number of months between disbursement and repayment, including any grace period.
- Now, enter the interest rate expected during the repayment period, as a percentage.
- Finally, enter the number of installments for the loan. The maximum repayment period for most federal loans is 120 months (ten years) but some private loans offer longer repayment periods.
You should be aware that many school loan calculators will not allow you to enter a payment amount of less than $50. You should enter realistic figures in order to get a decent response that will help you plan your financial future.
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