May 18, 2021

How Much Is A Student Loan?

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The problem of student debt is a big one, and there's plenty of it — approximately $1.7 trillion, compared to just $250 billion in 2004. In fact, student loans have overtaken credit card debt as the second most common type of household debt after mortgages. Student loans affect about 44 million Americans. However, even though student loans are widespread, the average person might not know how much a student loan actually costs.

If you find yourself Googling "How much for student loans?" Keep reading! This article will discuss how much they are and what affects student loan costs.

So, How Much Is a Student Loan?

Statistics show that the average student loan debt in 2019 was $33,654. However, to accurately calculate the overall cost of your student debt, you must first recognize the fees involved with taking out a loan.

What Affects the Cost of Student Loans?

Other variables, aside from the amount borrowed, will increase the overall cost of your student loan over time. The following are the most relevant terms that decide the cost of a student loan:

Origination Fees

The one-time charge added to a loan as it is taken out for the first time is known as an origination fee. Origination fees are rare on private student loans, although they’re common on federal student loans.

Origination fees on subsidized and unsubsidized federal student loans that are charged directly to borrowers are typically about 1% of the loan sum. Additionally, origination fees of about 4% of the loan amount apply to federal PLUS loans for parents and graduate students.

Interest Rates

Both federal and private student loans have interest rates, which are basically what the creditor charges you to take out a loan. Even if you don't have to start repaying until after your graduation, interest begins to accrue as soon as you collect the funds. As a result, your loans will accumulate to be greater than the amount you initially borrowed.

The most expensive aspect of borrowing money is usually the interest, but you can typically pay less if you take out a loan for a shorter amount of time. Subsidized interest, capitalized interest, and variable interest rates are all forms of interest that can be added to your student loan.

Late Fees

If a payment is late, the loan provider can charge a fee. You can set up auto-debit to help you prevent incidences of late payments. By doing so, you no longer have to monitor your monthly loan payments because your bank will automatically pay this on a regular schedule. Simply ensure that you have sufficient funds in your account to meet your monthly obligations.


A deferment helps you to put your student loan payments on hold for a certain period. Certain cases, such as returning to school or enlisting in an internship or residency program, can grant you deferment. However, remember that interest may continue to accrue when you're in deferment, increasing the overall cost of your student loans.


You may be able to delay your loan payments temporarily through forbearance. If you're in a momentary financial bind, forbearance will help you escape delinquency and default. You will not be required to make payments when in forbearance. Interest can, however, continue to accrue. As a result, the interest may be applied to your loan principal at the end of your forbearance period, increasing your overall loan cost.

Takeaway Points

Many Americans are burdened with student debt. However, the average citizen may not be aware of the cost of a student loan. To determine the total cost of student loans, you must first understand the fees associated with borrowing money. These additional costs include origination fees, interest rates, and late payment fees. Deferment and forbearance can also affect the cost of your student loan. Knowing how much your student loan costs is one of the first steps of staying on top of your debt payments.

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