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Managing Student Loan Debt

The Office of Student Financial Literacy's mission is to empower students to make informed financial decisions to help students reduce their overall student loan debt. Be sure to understand the type of loans you are taking and how interest is calculated.

Subsidized v. Unsubsidized Loans

Subsidized Loans

  • Undergraduate loans determined by financial need and school
  • Do NOT accrue interest while in school or deferment

Unsubsidized Loans

  • Undergraduate and graduate loans not based on financial need
  • Accrues interest while in school or deferment

Private Loans

  • Issued by banks or financial institutions, co-signer is usually needed
  • Accrues interest while in school or deferment

Borrowing Best Practices

Every dollar you do not borrow is a dollar you will not have to repay with interest. Explore these strategies to help reduce student loan debt and borrow with confidence.

Creating a budget helps you understand your actual cost of attendance and borrow only what you truly need. Reducing your borrowing by just $5000 per year ($416 per month) can significantly lower your future loan payments and total repayment costs. 

Get started today with the AAMC's student budget worksheet and build a plan for your financial success. 

Scholarships, grants, and personal savings can help reduce the amount you need to borrow and repay later. Take time to search for institutional and external scholarship opportunities and consider using available savings to help cover educational expenses. 

Realize you borrowed more than you need? Federal student loans can be returned within 120 days of disbursement. Returning funds during this timeframe reduces the loan amount, along with the interest and origination fees charged on the portion returned. 

Student Loan Calculators

There are many student loan calculators available online. The best calculator is available on studentaid.gov where you can use your specific loan details and simulate loan repayment and how much borrowing more will cost you.

Additional calculators include Smart Asset's Student Loan Calculator, Medloans Calculator and Organizer, and Dental Loan Organizer and Calculator.

Seeking more resources on financial aid? Check out the Office of Student Financial Aid.

Repayment Management

Choosing a repayment plan is one of the most important financial decisions you'll make after graduation. Federal student loan borrowers with loans disbursed after July 1st, 2026 will have access to new repayment plan options. Explore the plans below to learn which option may best fir your future income and financial situation. 

Monthly payments are a fixed amount that ensures your loans are paid off within 10-25 years depending on the amount borrowed. Because the loan is fully repaid by the end of the repayment term, loan forgiveness is generally not a factor under this plan.

If you plan to pursue Public Service Loan Forgiveness (PSLF), keep in mind that payments made under the Tiered Standard Repayment Plan do not count toward PSLF eligibility.

Repayment Term

Outstanding Principal Balance Repayment Term
 Less than $25,000 10 years
 $25,000 to $49,999 15 years
 $50,000 to $99,999 20 years
 $100,000 or more 25 years
Explore the Plan

The Repayment Assistance Plan (RAP) is the only income-driven repayment option available to federal student loan borrowers with loans disbursed after July 1, 2026. Monthly payments are based on your adjusted gross income (AGI). Eligible payments will count towards Public Service Loan Forgiveness (PSLF) and any unpaid interest is subsidized by the federal government. If your payment qualifies for an interest subsidy, your loan principal will also be reduced by $50 each month.

What Your Monthly Payment?

Annual Adjusted Gross Income Bracket RAP Payment Calculation
 $0 to $10,000 $120 ($10 monthly minimum)
 $50,001 to $60,000 5% of AGI
 $60,001 to $70,000 6% of AGI
 $70,001 to $80,000 7% of AGI
 $80,001 to $90,000 8% of AGI
 $90,001 to $100,000 9% of AGI
 More than $100,000 10% of AGI

Important Considerations:

  • Payments will fluctuate based on your income.
  • Any amounts forgiven are considered taxable income in the year of forgiveness.
  • Married and filing jointly? Both you and your spouse's income will be used to determine your AGI and monthly payment amount. 

See How RAP Works

Private loan repayment terms vary by lender and the loan agreement you signed. Be sure to review your repayment options with your lender. Some loan servicers offer reduced payments and interest rates while you are in school, sometimes as low as $25 per month, which may help lower borrowing costs. If you have a cosigner, review your lender's cosigner release requirements to understand when you may be eligible to remove them from the loan. 

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Contact the Office of Student Financial Literacy

MSC 203
Harper Student Center
45 Courtenay Dr, Fl 3
Charleston, SC 29425-8917

Hours of Operation: Monday-Friday, 8:00 am-4:30 pm

Phone: 843-792-7744

Email: financialliteracy@musc.edu

Book an Appointment