 |
|
No matter which loan program you choose, remember to borrow only what you absolutely need--what you borrow today you will need to pay back (with interest) later! You might not need to borrow as much, if at all, if you are able to work or cut costs (such as personal/miscellaneous costs). Many students wisely maintain a lower-cost student lifestyle in order to borrow the least amount necessary to cover their college costs. The result is lower debt and loan payments that will be easier to manage after graduation.
How Much Will You Need to Repay? |
If you are a current U-M student, you can view the amount of federal loan funds you have borrowed to date on Wolverine Access (once there, select Student Business > login > Financial Aid > Aid Year > Loans > View Student Loan Summary). Once you view your cumulative loan amounts on Wolverine Access, you can record or print this information and use the repayment calculators, below, to determine what your monthly repayment amounts and interest payments will be when you begin repaying your loans. This information will help you determine a manageable level of debt once you graduate or leave school.
Repayment Calculators
FEDERAL PERKINS LOANS, HEALTH PROFESSIONS LOANS, AND NURSING LOANS:
You can use FinAid's repayment calculator to determine the estimated amount of your monthly payments:
 Go to the FinAid Loan Repayment Calculator Website
Once at this site, you will be asked to provide the following information:
- Loan Balance: This is the "Projected Total" amount listed for the Perkins Loan (as shown on the View Student Loan Summary page of Wolverine Access).
- Interest Rate: 5%
- Loan Term (Years): 10 years
- Minimum Payment: $40
Once you've entered the above information in the calculator fields, click on the "Calculate" button. Note: If you select "Print Payment Schedule" you will receive very detailed information about repaying your loan.
FEDERAL DIRECT STAFFORD LOANS (SUBSIDIZED/UNSUBSIDIZED):
Use the repayment calculator on the Department of Education's Direct Loan website to determine the estimated amount of your monthly payments:
Go to the Direct Loan Repayment Calculator Website
Go to the Interactive Calculators site, select the appropriate monthly repayment calculator (Standard/Extended/ Graduated or Income Contingent), and provide the following information:
- Loan Type: Select "Direct Stafford/Ford" (not PLUS).
- Loan Amount: Type in the "Projected Total" amount of your Direct Stafford Loan (as shown on the View Student Loan Summary page of Wolverine Access).
Once you've typed in the above information in the calculator fields, click on the "Calculate" button. If you select the "Details" button next to the appropriate repayment plan, you will see more information about your loan repayment (how much of your repayment will be interest, etc.).
PRIVATE LOANS:
Use the repayment calculator on the FinAid website to determine the estimated amount of your monthly payments:
Go to the FinAid Loan Repayment Calculator Website
Once at this site, you will be asked to provide the following information:
- Loan Balance: This is the "Projected Total" amount listed for your private loan (as shown shown on the View Student Loan Summary page of Wolverine Access).
- Interest Rate: This information is available from your lender or on your promissory note.
- Loan Term (Years): This information is available from your lender or on your promissory note.
- Minimum Payment: This information is available from your lender or on your promissory note.
Once you've entered the above information in the calculator fields, click on the "Calculate" button. Note: If you select "Print Payment Schedule" you will receive very detailed information about repaying your loan.
Average Indebtedness Levels of U-M Graduates
Repayment Estimates for Average Indebtedness Levels of U-M Graduates (for Federal Direct Loan Borrowers--Subsidized and/or Unsubsidized).
BACHELOR'S DEGREE:
The average amount borrowed by a student receiving a bachelor's degree is $19,050. The chart below shows the monthly payments and the total amount repaid under three different repayment options for a loan of $19,050.
|
Repayment Plan |
Term
(In Months) |
Initial Monthly Payment |
Total Payments (Principal +
Interest*) |
|
Standard Plan |
120
(10 years) |
$219 |
$26,308 |
|
Extended Plan |
180
(15 years) |
$169 |
$30,438 |
|
Graduated Plan |
180
(15 years) |
$110 |
$33,354 |
*Interest rate of 6.8% (the current rate during repayment or forbearance).
MASTER'S DEGREE:
The average amount borrowed by a student receiving a master's degree is $34,900. The chart below shows the monthly payments and the total amount repaid under three different repayment options for a loan of $34,900.
|
Repayment Plan |
Term
(In Months) |
Initial Monthly Payment |
Total Payments (Principal +
Interest*) |
|
Standard Plan |
120
(10 years) |
$402 |
$48,196 |
|
Extended Plan |
240
(20 years) |
$266 |
$63,938 |
|
Graduated Plan |
240
(20 years) |
$201 |
$69,542 |
*Interest rate of 6.8% (the current rate during repayment or forbearance).
|
Federal School Code
002325
|
|
|
General Loan
Repayment Chart
(10 years 120
months)
If you borrow $10,000
at 5% interest you will
need to pay $106 a
month for 10 years to
pay off your loan.
|
Loan Amount
|
Monthly Payment
|
|
|
5% Interest |
|
$5,000 |
$53 |
|
$10,000 |
$106 |
|
$15,000 |
$159 |
|
$20,000 |
$212 |
|
$30,000 |
$318 |
When you graduate,
withdraw, or drop below
half-time enrollment,
you must complete loan
repayment "exit"
counseling:
More Information
-
-
-
Also see our page on loan consolidation to find out how consolidating your loans can ease your payments.
-
| | |
