When financing your education, a student loan assessment tool can be handy. With this handy tool, you can easily estimate your monthly payments, total interest, and more, so you can make a wise decision about how much to borrow and how to budget for your loan repayment. Here are four things you can know using a student loan calculator:

Your Monthly Payment

Using a student loan calculator, you can quickly and easily estimate your monthly payment. This is important because it will help you budget for your loan repayment and make sure you can make your payments on time. You can enter the loan amount, interest rate, and loan term, and the calculator will give you an estimate of your monthly payment. You can also enter the type of loan, whether a federal or private student loan, as the calculation will vary. By inputting all the relevant information, you can get a clear picture of your monthly payments and the impact on your budget.

The Total Cost of Your Loan

Another thing you can know using a student loan assessment tool is the total cost of your loan. This includes the total amount of interest you will pay over the life of the loan. This is important to know because it can help you compare different loan options and choose the one that is the most affordable for you. Furthermore, you can also find out how much you will pay after the loan term is over. This will give you a decent idea of how much you will be paying in interest and how much you will be paying toward the principal.

The Impact of Extra Payments

Many student loan calculators also allow you to enter extra payments that you plan to make. This can help you see how much money you can save on interest over the life of the loan by making extra payments. It can also help you pay off your loan faster. By entering the extra payments you plan to make, you can see how much faster you will be able to pay off the loan and how much money you will save on interest. This can also help you decide if making extra payments is worth it.

The Impact of Refinancing

Refinancing your student loans can be a great way to save money on interest, but knowing what it would cost you is important. A student loan assessment tool can help you compare the costs of refinancing your loans with the costs of keeping your current loans. By entering your current and new loan information, you can compare the costs and see if refinancing is good for you. Finally, it is essential to consider factors such as interest rates, loan terms, and fees before deciding to refinance.

As per SoFi, “the loan calculator will provide estimates for your estimated monthly payment, total repayment amount, and total interest owed.”

A student loan assessment tool is a powerful tool that can help you make informed decisions about financing your education. Using a student loan assessment tool, you can estimate your monthly payment, the total cost of your loan, the impact of extra payments and the impact of refinancing. It’s a great way to budget for your loan repayment and make sure you can make your payments on time. With this information in hand, you can choose the right loan option for you and your budget.