Loan Calculator for College

To work out what your monthly payments will be, you need to know how much you will be borrowing and use a loan calculator for college.

When applying for college and picking between schools, there are a lot of factors to consider. In an ideal world, the price wouldn't be a factor but you have to be realistic. College is expensive and before making a decision, you need to know whether you can afford to make the payments. With an increasing number of people struggling to find jobs after college, it's more important than ever to crunch the numbers before you take out a student loan.

The best way to do this is to speak to the schools finance point of contact to see the estimated loan size, and get a pre-approved estimate by visiting the financial aid office of your college or university. Next, you need to look at the interest rate and the loan term so you can work out exactly how much you will owe. Factor in any financial aid or exemptions that you may be entitled to, and explore all options here so you can make savings where possible.

The payments will change significantly over time as the principal reduces.

The payments will change significantly over time as the principal reduces and the interest payments change, so it can be difficult to plan your finances over such a long period. Any mistakes could land you in a difficult position in the future.

Using a college loan calculator can help you determine exactly what you will have to pay and when. That way, you can decide whether a certain school is affordable or not and whether the debt is worthwhile in the long run, considering your potential future earnings.