Student loan calculators are very significant planning tools for students in order to arrange repayments on their various student loans. About half the students in America alone are graduating in close companionship with a loan of an average of $10K. With the graduate degree and the chance to get photographed for posterity in the mortarboard and the black graduation suit, they have scrolls of loan documentation that they need to find a proper solution to. Getting jobs is becoming more and more difficult by the day, and the dreams students saw in their pre-graduation days – the real American dream – seems to get squashed even before the first frame can halfway come true.
This is where the student loan calculators come in the picture. More than anything else, they help students to get a real summary of the way they can work out their loan. These calculators are online and can be accessed quite easily.
Student Loan Calculators – The Features
Basically, student loan calculators will need about five to six pieces of information on the student loan, based on which they will produce their result. Typically, the calculators will ask for the following things:-
Principal balance on the loan
Rate of interest of the loan
Tenure of the loan
Fees on the loan
Minimum payments on the loan
The principal balance is the amount that is due at the time of making the calculation. Rates of interest will vary from loan to loan. This rate is taken by default for the common federal loans – the Perkins Loan is at 5%, the Federal Stafford Loan is at 6.8% and the Federal PLUS Loan is at 8.5%.
Tenure on the loan is to be inputted in number of years that are left for the loan at the time of making the calculation. It is auto-converted into months for the calculations. Whatever fees on the loans were applicable have to be mentioned here. Also, if there is a minimum payment on the loan to be done each month – like $50 – then that has to be mentioned.
Student Loan Calculators – The Results
The results that the student loan calculators show are a comprehensive summary of the way the repayments need to be made. The following are some of the important inclusions in the results:- Read the rest of this entry »