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    Student Loans: How To Estimate How Much You'll Pay

    Judy Miller - 2020-06-30T21:00:00.000Z

    The most essential thing to consider when looking for student loans is the average student loan payment that you’ll have to make for years after studying. Having an estimate allows you to compare multiple options and better allocate your budget.

    In this article, we’ll help you learn the process of estimating average payments for student loans, so you can make the best decisions.

    Average Undergrad Payment

    The average student loan cost for undergrad students is around $29,000. On average, undergrad students pay around $393 per month as repayment. However, this amount will vary based on your degree.

    • If you opt for a Standard Repayment Plan with a term of 10 years at the average rate of 4.53%, you’ll pay an estimated $305 per month
    • If you opt for a Graduated repayment plan at the same rate, you’ll initially pay around $172 per month. But it’ll grow to almost $516 per month during the latter half of the term. Over the life of the loan, you’ll be paying an average of $344 per month
    • If you opt for an IDR repayment plan such as a REPAYE program, the average payment will be around $389 per month. This may be higher or lower depending on your income

    Average Graduate School Payment

    Overall, the average grad school debt is around $84,300. However, this number can go higher depending on the professional degree you’re applying for. 

    For instance, if you took a standard loan of $66,000 to pursue a Master’s degree at a rate of 5.7%, your payments based on the choice of repayment will be as follows:

    • If you enroll in a standard 10-year repayment plan, your total payment over the term of the loan will be $86,728. This means you’ll need to pay an estimated $723 per month
    • If you choose the Graduated Repayment Plan, the total cost will be $92,215 and your average payment will be around $824 per month
    • If you opt for a REPAYE Plan, you’ll end up paying almost $105,885 over the term of the loan and your monthly payments will be around $613 per month

    Average Law School Payment

    The average student loan debt for law school students comes to around $148,800. This is a monthly payment of around $1,708 every month for a tenure of 10 years at the standard rate of 6.7%.

    However, most lawyers have the option to apply for a PSLF program by enrolling themselves in an IDR-repayment plan like REPAYE. Below are the estimates for a student loan for law school.

    • Opting for a Standard 10-year repayment plan means you’ll pay an average of $1,708 per month
    • Opting for a REPAYE plan including PSLF means that you start by paying around $327 per month (assuming you earn at least $58k as a public defender). This repayment will increase to $557 as your income increases. Over the term of the repayment schedule, you’ll pay an average of $442 per month considering the fact that you can qualify for more than $170,000 in PSLF
    • Opting for a REPAYE plan without PSLF means an average payment of $1,412 per month over the term

    Average Medical School Payment

    The average student loan debt for medical students is around $251,600. New doctors need to adjust to the amount of their monthly loan payments, though doctors completing their residencies typically have an easier time with monthly obligations based on their earnings.

    While some doctors stick to the standard repayment plan, many opt for forbearance or enroll in an IDR-based repayment plan during residency.

    • If you opt for the standard 10-year repayment plan, your monthly repayments will be around $2,870.
    • If you opt for forbearance during residency, interest will accrue on the principal. Once the residency duration of 3 years is over, you’ll pay an average of $3,533 per month over the 10-year term.
    • Opting for an IDR plan during residency means an average monthly payment of $1,602. Once completed, the monthly payments will be around $3,610. 

    How To Calculate Your Monthly Payment

    The monthly payment of an average student loan would depend on the amount you’ve borrowed, the repayment term of the loan, and the interest rate. Also, the time you’ll take to repay the loan should also be considered when estimating what the monthly payment will be. 

    To calculate the average monthly payment with a new repayment term or rate of interest, you can use any online student loan repayment calculator. Similarly, to calculate the average monthly payment for the IDR plan, you need to use the Department of Education’s repayment estimator to get the average monthly payment. 

    Bottom Line

    Average monthly payment amounts of student loans are generally quite affordable. Yet, if an amount is too high, there are various ways of reducing the monthly payment like extending repayment terms, refinancing, or enrolling for an income-driven repayment plan. The very first step is always to make a decent estimation of what the monthly payment will amount to.