Those who graduate college with student loansOpens a New Window. owe close to $30,000Opens a New Window. on average, according to the most recent data from the Institute for College Access & SuccessOpens a New Window..
But they’ll likely repay thousands more than that because of interest. One key to limiting interest cost is choosing the right repayment plan. The bottom line? Opting for lower payments will cost you more overall.
Using a tool like the Education Department’s Repayment EstimatorOpens a New Window. can help you better understand potential costs. Here’s how much $30,000 in unsubsidized federal student loans would cost under different plans at the 2019-2020 undergraduate rate of 4.53 percent.