Estimate your monthly payments for a Sallie Mae private student loan.
Immediate Repayment (Principal + Interest)
Interest-Only Payments During School
Deferred Payments (Interest Capitalizes)
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Enter loan details to see your estimated monthly payment.
Understanding Your Sallie Mae Loan Payments
When considering a private student loan from Sallie Mae, it's crucial to understand how your monthly payments are calculated.
These loans can be a valuable tool for covering educational expenses not met by federal aid or savings, but their terms and repayment structures
require careful consideration. This calculator helps you estimate your potential monthly payments based on the loan amount, interest rate,
loan term, and your chosen repayment plan.
How the Monthly Payment is Calculated
The core of the calculation for standard repayment (Principal + Interest) uses the following formula, similar to other installment loans:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly payment (principal and interest)
P = The original loan principal amount
i = Your monthly interest rate (annual rate divided by 12)
n = The total number of payments (loan term in years multiplied by 12)
Important Note: This formula applies when you begin repaying both principal and interest immediately. Sallie Mae offers other repayment options that can affect the total amount paid over the life of the loan.
Sallie Mae Repayment Options Explained:
Sallie Mae offers several repayment plans, each impacting your current cash flow and total interest paid:
Immediate Repayment (Principal + Interest): This is the standard repayment option. You start making full payments (principal and interest) soon after the loan is disbursed. This results in the lowest total interest paid over the life of the loan because you begin paying down the principal right away.
Interest-Only Payments During School: While enrolled in school at least half-time, you can choose to make interest-only payments. This keeps your monthly payments lower during your studies, but the unpaid principal continues to accrue interest. Once you graduate or drop below half-time enrollment, your payments will increase significantly to cover both the accumulated interest and the principal.
Deferred Payments: Under this option, you make no payments at all while you are in school at least half-time and for a grace period after graduation. However, interest accrues during this deferment period and is typically capitalized (added to the principal balance) when repayment begins. This means you'll pay interest on the interest, leading to a higher total cost for the loan.
Why Use This Calculator?
This Sallie Mae loan calculator is designed to provide a clear estimate of your potential monthly financial obligation. It helps you:
Budget Effectively: Understand how much you'll need to budget for loan payments after graduation.
Compare Options: See the difference in monthly payments between various loan amounts and terms.
Plan for the Future: Make informed decisions about how much to borrow and which repayment strategy might best suit your financial situation.
Disclaimer: This calculator provides an estimate only. Actual loan terms, rates, and payments may vary. It is essential to consult the official Sallie Mae loan disclosures and agreements for precise details. Factors like credit score, loan type, and specific Sallie Mae programs can influence the final figures.
function calculateLoan() {
var principal = parseFloat(document.getElementById("loanAmount").value);
var annualRate = parseFloat(document.getElementById("interestRate").value);
var years = parseInt(document.getElementById("loanTerm").value);
var repaymentOption = parseInt(document.getElementById("repaymentOption").value);
var resultDiv = document.getElementById("result");
if (isNaN(principal) || principal <= 0) {
resultDiv.innerHTML = "Invalid loan amount. Please enter a positive number.";
return;
}
if (isNaN(annualRate) || annualRate < 0) {
resultDiv.innerHTML = "Invalid annual interest rate. Please enter a non-negative number.";
return;
}
if (isNaN(years) || years 0) {
monthlyPayment = principal * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
monthlyPayment = principal / numberOfPayments; // Handle 0% interest case
}
estimatedTotalRepayment = monthlyPayment * numberOfPayments;
estimatedTotalInterest = estimatedTotalRepayment – principal;
resultDiv.innerHTML = '$' + monthlyPayment.toFixed(2) + ' Estimated Monthly Payment';
} else if (repaymentOption === 2) { // Interest-Only Payments During School
monthlyPayment = principal * monthlyRate; // Only interest payment
// Note: This calculator doesn't show the *full* payment after grace period,
// only the interest-only portion. A full amortization would be complex.
resultDiv.innerHTML = '$' + monthlyPayment.toFixed(2) + ' Estimated Interest-Only Monthly Payment' +
'(Full principal + interest payments begin after school/grace period)';
} else if (repaymentOption === 3) { // Deferred Payments
// Interest accrues and capitalizes. For simplicity, we'll show 0 payment now,
// but warn about future costs. A full calculation would amortize the capitalized balance.
resultDiv.innerHTML = '$0.00 Current Monthly Payment (Deferred)' +
'(Interest accrues and capitalizes. Payments start later.)';
// Optionally, you could add a calculation for the future capitalized balance if needed.
}
// Add a note for options 2 and 3 if they result in higher total cost
if (repaymentOption !== 1) {
resultDiv.innerHTML += 'Choosing repayment options other than immediate principal and interest may result in higher total repayment costs over the life of the loan due to interest capitalization.';
}
}