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Financial Aid >Repayment >Calculations

- Repayment Calculations & Scenarios -

To help illustrate the effects of extended repayment terms and consolidation, the following calculations are shown below. Note: some rounding for simplicity was employed and calculations do not include accrued interest, so your actual payment amounts will vary.


A. Federal Stafford Loans (FSL-A): Stafford loans borrowed before July 1, 2007 and not consolidated. This type of Stafford Loan has a variable rate and will continue to fluctuate with the market until paid in full or consolidated. The variable rate is determined in June of every year and goes into effect from July 1st to July 1st of the following year. (2007-2008) the rate was 6.62% while in school and 7.22% while in repayment. From July 2008 to July 2009 the rate will be 3.61% while in school and 4.21% while in repayment. The interest rate will change and fluctuate based on the 91-day T-bill rate July 1st of every year, but will never exceed 8.25%.

Provided below are calculations for you to compare the difference in monthly payments and total interest paid if you were to extend your variable rate Stafford Loans out to the maximum repayment term of 25 years, if you were to consolidate your variable rate Stafford Loans before July 1, 2008, and if the maximum interest rate allowed (capped at 8.25%) was applied to your variable rate Stafford Loans.

Fed. Stafford ($10,000)

borrowed

Not Consolidated

-Variable Rate-
currently 7.22%

Consolidated

before 07/01/08
at 7.25%

Maximum Interest Rate Allowed
at 8.25%

Repayment Term

10yrs

25yrs

25yrs

30yrs

25yrs

30yrs

Monthly Payment

$117

$72

$72

$68

$79

$75

Total Amount Paid

$14,069

$21,626

$21,684

$24,558

$23,654

$27,046

Total Interest Paid

$4,069

$11,626

$11,684

$14,558

$13,654

$17,046

[Note: For every $10,000 you have borrowed in this type of loan, multiply by the dollar amounts listed above]

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B. Federal Stafford Loans (FSL-B): Stafford loans borrowed after July 1, 2007 and not consolidated. This type of Stafford Loan has a fixed rate of 6.8%. The interest rate is increased to 6.875%, if you consolidate this loan by itself. There is no significant benefit in consolidating this loan by itself, especially since the interest rate is already fixed.

Provided below are calculations for you to compare the difference in monthly payments and total interest paid if you were to extend your fixed rate Stafford Loans out to the maximum repayment term of 25 years, and if you were to consolidate your fixed rate Stafford Loans.

Fed. Stafford ($10,000)

Not Consolidated

(at 6.80%)

Consolidated

(at 6.875%)

Repayment Term

10yrs

25yrs

25yrs

30yrs

Monthly Payment

$115

$69

$70

$66

Total Amount Paid

$13,810

$20,822

$20,965

$23,649

Total Interest Paid

$3,810

$10,822

$10,965

$13,649

[Note: For every $10,000 you have borrowed in this type of loan, multiply by the dollar amounts listed above]

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C. Federal Consolidated Loans (FCL): Federal loans that were consolidated. This type of loan has a fixed rate determined by the weighted average of the loans. If you have the details of your loan (Amount, Interest rate, and Repayment Term), you can use a lender's repayment calculators to estimate your payments or contact your lender for more information.

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D. Federal Grad PLUS Loans (FPL): Grad PLUS loans borrowed after July 1, 2006 and not consolidated. The PLUS Loan has a fixed rate of 8.5%. The interest rate is decreased to 8.25% when consolidated due to federal regulations; However, keep in mind, repayment incentives offered under a Grad Plus Loan will no longer apply. Contact your lender directly for more information.

Fed. PLUS ($10,000)

Not Consolidated

(at 8.50%)

Consolidated

(at 8.25%)

Repayment Term

10yrs

25yrs

25yrs

30yrs

Monthly Payment

$124

$81

$79

$75

Total Amount Paid

$14,878

$24,157

$23,654

$27,046

Total Interest Paid

$4,878

$14,157

$13,654

$17,046

[Note: For every $10,000 you have borrowed in this type of loan, multiply the dollar amounts listed above]

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E. Private Commercial Loans: Private education loans that are not federally regulated. This type of loan has a variable rate determined by the lender based on your credit report. If you have the details of your loan (Amount, Interest rate, and Repayment Term), you can use a lender's repayment calculators to estimate your payments. Contact your lender for more information.

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