Free Online Calculators

Parent PLUS Loan Calculator

Calculate monthly payments for Parent PLUS student loans. Includes origination fees and total cost of borrowing for your child\

Parent PLUS Loan Calculator

Parent PLUS

Total Borrowed
$167.3k
Monthly
$2.1k
Total Cost
$255.3k
Significant Retirement Impact

Reduced retirement contributions could cost you $165,542 in lost future value. Consider having your student maximize federal loans first.

High Payment-to-Income Ratio

Your loan payment would be 34.0% of monthly income. Financial advisors recommend keeping student loan payments under 15% of income.

Total Borrowed
$167.3k
Over 4 years
Monthly Payment
$2.1k
10-year standard
Total Interest
$87.9k
52.5% of principal
Age at Payoff
60
15y until retirement

Amount borrowed each year

Typical college cost increase: 3-5% annually

2024-25: 9.08%

2024-25: 4.228%

Number of additional children who will need Parent PLUS loans

Loan Summary
Year 1:$40,000
Year 2:$41,200
Year 3:$42,436
Year 4:$43,709
Total Borrowed:$167,345
Origination Fees:-$7,075
Net Disbursed:$160,270
Standard (10-Year)

Fixed payment for 10 years

$2,127/mo
10 years
Total Paid
$255.3k
Interest
$87.9k
Forgiveness
$0
Graduated (10-Year)

Payments increase every 2 years

$1,064/mo
10 years
Total Paid
$165.9k
Interest
$154.4k
Forgiveness
$0
Extended (25-Year)

Lower payment, longer term

$1,414/mo
25 years
Total Paid
$424.1k
Interest
$256.7k
Forgiveness
$0
ICR (Income-Contingent)

Based on income, possible forgiveness

$820/mo
25 years
Total Paid
$245.9k
Interest
$753.3k
Forgiveness
$674.7k
ICR Forgiveness Tax Bomb

Forgiven amount is taxable income in the year of forgiveness.

Forgiven Amount:$674,735
Est. Tax Owed:$148,442
Parent PLUS Loan Tips
  • High rates: Parent PLUS loans have higher rates than student federal loans (9.08% vs 6.53%)
  • Student loans first: Have student max out federal Direct Loans ($27k total) before Parent PLUS
  • Retirement risk: Don't sacrifice retirement security - you can't borrow for retirement
  • ICR option: Consolidate to access Income-Contingent Repayment with possible forgiveness
  • No co-signer: Student is not responsible; loan is parent's obligation only
  • Multiple children: Consider total debt load if borrowing for multiple kids
  • Alternatives: Compare with private loans, home equity, or having student work

Parent PLUS Loan Calculator Guide

Understanding Parent PLUS Loan Calculator

[Educational content introduction - 3 paragraphs explaining the calculator's purpose, importance, and how it helps users make better financial decisions.]

Key Terms You Should Know

Key Term 1

[Definition and explanation]

How It Works

[Step-by-step process explanation with examples]

8 Best Practices

8 Common Mistakes to Avoid

Frequently Asked Questions

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