Student Loan Payoff Calculator

What are the current federal student loan interest rates?

For 2024-25: Direct Subsidized/Unsubsidized (undergraduate): 6.53%. Direct Unsubsidized (graduate): 8.08%. Direct PLUS (parents/grad): 9.08%. These rates are set annually by Congress based on the 10-year Treasury note yield plus a fixed add-on.

What is the SAVE plan?

SAVE (Saving on a Valuable Education) is the newest income-driven repayment plan. Payments are 5% of discretionary income for undergraduate loans (10% for grad). Unpaid interest doesn't capitalize. After 10–25 years, the remaining balance is forgiven (tax-free through 2025). SAVE is paused and in litigation as of 2024 — check studentaid.gov for current status.

Can I deduct student loan interest on my taxes?

Yes — you can deduct up to $2,500 of student loan interest paid annually on federal taxes. This deduction is available even if you don't itemize (it's an above-the-line adjustment). It phases out for single filers with MAGI $75,000–$90,000 and MFJ $155,000–$185,000 in 2024.

Should I pay off student loans or invest?

If your loan rate is under 5%, investing often wins (stock market has historically returned ~7–10% annually). If your rate is above 7%, aggressive payoff is usually better. Between 5–7%, it's roughly equal — factor in job stability, risk tolerance, and tax deductibility. Always capture any employer 401(k) match before making extra loan payments.