Vocations · Professional Development · Paying for school

Can the first job
carry the loans?

Put the loan balance next to the salary you expect after graduating. The calculator finds the monthly payment, the interest and how much of each year’s pay goes to the loans.

Check my paymentWhat you get

The loan payment vs. salary calculator

The worked example is a made-up communications degree. Nothing you type leaves this browser.

Loading the calculator. If nothing appears, turn on JavaScript.

What you get

Vocations · Professional DevelopmentFree

What you finish with
The monthly payment, total interest, the payment as a share of pay in every year of the term, debt to salary and debt to income. It prints for a family conversation and downloads as a spreadsheet.
Who it is for
High school and college students deciding how much to borrow, families comparing offers, and recent graduates planning repayment.
Format
Browser calculator for a phone, tablet or computer, by touch or keyboard. Prints a summary; downloads a spreadsheet (.csv); export and import a file.
Access
Free. No account, no sign-in and nothing to install. Everything you type stays in this browser; nothing is sent to Caveat.
Where it lives
The Professional Development space in Caveat Vocations.
Support
Questions, a correction or a request: team@caveatacademic.com.

How to use it

  1. Add up every loan, including interest built up in school.
  2. Type the rate, or a weighted average.
  3. Look up a realistic starting salary for the field.
  4. Read the share of pay in year 1.
  5. Try a smaller balance to see what borrowing less does.

Check my payment

How the payment is worked out

A level payment that clears the balance and interest by the end of the term.

The worked example: a communications degreeBalance$31,000at 6.39% for 10 yearsPayment$350.27a month, levelYear-1 pay$46,000gross, before taxShare of pay9.1%$4,203 a yearThe worked example: a communications degreeBalance$31,000at 6.39% for 10 yearsPayment$350.27a month, levelYear-1 pay$46,000gross, before taxShare of pay9.1%$4,203 a year
The payment stays the same for the whole term while pay rises, so the share of pay falls each year.

The payment

A level payment covers the month’s interest and pays down some of the balance, so by the last month the loan is gone. On the standard plan for federal loans that is 120 payments over 10 years. A longer term lowers the payment and raises the total interest.

Against your pay

The payment is fixed but pay usually rises, so the share of pay falls each year. Planners often aim for loans under about 10 percent of gross pay and total borrowing under the first year’s salary. These are rules of thumb, not limits. Lenders also look at all debt payments against income.

Sources

  1. Federal Student Aid, U.S. Department of Education. Repayment plans and the Loan Simulator (studentaid.gov).
  2. Federal Student Aid, U.S. Department of Education. Interest rates and fees for federal student loans (studentaid.gov).
  3. Consumer Financial Protection Bureau. What is a debt-to-income ratio? (consumerfinance.gov).
  4. U.S. Department of Education. College Scorecard: median earnings and debt by field of study (collegescorecard.ed.gov).

The worked example is made up. This is a planning estimate, not repayment advice; private loans and income-driven plans follow their own terms. Your entries stay in this browser. Support: team@caveatacademic.com.