How much can I expect to pay in interest on a 35,000 student loan?

Answer 1

Most student loans have a standard repayment term of 10 years but these terms can be long as 30 years if (a) you have a large amount of debt and (b) your lender allows this. Interest rates on student loans vary greatly and depends on the type of loan you have received (federal, private, etc.) and, sometimes, on your credit rating. As such, it would be hard to definitively answer your question without knowing some more details -- but here are some examples:

A $35,000 Stafford Loan borrowed at 6.8% (the current Stafford rate) repaid over ten years will accrue $13,333 in interest by the time you are through paying.

A $35,000 private (aka "alternative") student loan, borrowed at the Prime rate (currently 8.25%) and paid over 10 years will cost you $16,514 in interest alone.

If your credit is bad and you are forced to borrow this $35,000 (10-year) loan at the sub-prime rate of 14.25% (Prime+6), the interest alone will be $30,844. By the time you're done repaying this loan, it will cost you almost twice the original amount borrowed!

Now, your monthly payment on that sub-prime loan will be about $548 a month. If this payment seems unmanageable, you might consider extending your repayment period to, oh, maybe 20 years. This is an OK option if it means the difference between paying and defaulting. Paying this loan over 20 years instead of 10 will lower your monthly payment by $100, sure -- but at a very hefty cost: A $35,000 loan, paid at 14.25% over 20 years will accrue $70,986 in interest alone. This is how, in 20 year, a $35,000 loan can grow to $105,000. Yikes!

So, borrow wisely and pay very close attention to the interest rates of every loan and credit card you have! You'll be glad you did.

Answer 2

Depends on the interest rate and how long you'll be paying it off for as well as any other deals they may have offered you. They should offer you a calculator, or you can find one online like this: http://www.asksasha.com/loan-interest-calculator.html .