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

Interest Calculation

Most student loans charge simple interest, which is cheaper than compound interest.

Smart Borrowing Tips

Budget Wisely: Only borrow what you need and return extra funds. Reducing your loan by $5000 per year ($416/month) will significantly reduce your total repayment. Do the math to determine how much you truly need in financial aid.

Return Unneeded Funds: Learn more about returning unneeded loan funds.

Use Student Aid's Loan Simulator: Estimate your monthly payments and total costs.

Seek help from the Office of Student Financial Literacy prior to graduating so you can start off your new career with a better understanding of how to tackle your student loans.

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, Mapping your Future Income-Based Repayment 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

Payments on federal student loans begin once you graduate, are enrolled half-time, or leave school. Private loans are subject to the terms of the agreement.

The Standard Repayment Plan: Fixed payments over 10 years (or 25 years for extended plans), balance is paid off in full.

Income Repayment Plan: Payments based on income and family size, remaining balance is forgiven after payment term.