With the Trump administration promising to slash student debt by up to $4,000 by 2027, there’s an increasing clamor for students to get their student loans forgiven.
Theoretically, students can save as much as $4.7 trillion by not having to pay off their student debt in the future.
However, in reality, it’s impossible to know exactly how much money you’ll save by not paying off your debt, and even if you did, it could take up to 20 years to get there.
Fortunately, the federal government has an easy way to calculate exactly how many years of debt forgiveness you’ll be able to take.
The federal government’s Debt Reduction Calculator lets you estimate how much it will cost you to pay your debt off in 2027 and what you could save by paying it off now.
You can use this calculator to see exactly how it’ll cost you in 2023, 2024, and 2025.
But before you start counting down, here’s a little disclaimer: it’s not a perfect estimate of what you’ll get.
As of right now, it doesn’t include student loan forgiveness, nor does it include your federal income tax refund or other tax deductions you may be eligible for.
However it does include all of the other costs associated with your loan repayment, such as fees, interest, and property taxes.
If you have questions about how much you could get out of this calculator, or if you want to take advantage of any of the discounts, check out the FAQ below.
If the calculator doesn’t work for you, don’t worry.
The Federal Student Aid Office has more details about how it works.
If that doesn’t solve your problem, you can always ask your debt collector or creditor to help you figure out how much the debt will be forgiven.
Federal student loan calculator How much will it cost you?
If you’re a student who borrowed from the federal student loan program (known as the Direct Loan program), you can get a free copy of the Debt Reduction calculator from the Feds.
The calculator can help you determine the average interest rate that would cost you after you pay off your student loans in 2028, 2024 and 2025, depending on the terms of your loan.
If interest rates go up after that, you’ll probably save more.
If rates go down, you may pay more for your loan because interest will go up.
You might also be able save money by avoiding certain fees and penalties that you might have to pay in the event of a default.
In addition, the calculator can show you the estimated tax deductions and other costs that you could use to get the money back.
But be warned: even if the calculator shows you a lower cost than you would pay for the same amount of debt, the Fords website doesn’t give you the amount of the interest that you’d be paying on the loan.
You’ll have to calculate it yourself.
What if I want to know if I could save more money by not using my federal student loans?
The easiest way to figure out whether your interest rates will go down is to use the Debt Relief Calculator.
You don’t need to take the calculator if you don’t want to, but it does offer a nice comparison.
If it doesn’ t work for your situation, you’re probably best off asking your debt collection or creditor for help.
The information in the calculator isn’t perfect, and you may find that the calculator does not accurately reflect your exact situation.
If your situation doesn’t meet the criteria of the calculator, you might want to contact your federal student aid office to see if there are other ways you can pay down your student loan debt.