As a student in the United States, you are most likely not a stranger to student loans, as it is an important part of your academic journey, especially since it ensures that your education is fully or partially supported by funds made available by the United States government.
Major issues concerning student loans might come from figuring out your repayment process. If you took a $100,000 loan, you also want to find out how much you are expected to pay monthly over the standard period of ten years—a timeframe you are most likely to complete your payment.
Hence, it is important to figure out a repayment schedule that works for you. To successfully do this, consider factors such as the loan’s annual percentage rate, how long you want to pay the loan, and how much you want to pay monthly. By determining all of these factors early, you can go ahead and begin the payment of the loan.
How much is expected as a monthly payment on a $100,000 loan?
To determine how much you would pay monthly, we will consider using an APR of 10% as we explain your payment structure over different years of expected payment and the amount you will finally pay monthly that will see you successfully paying off your loan.
| Number of years | APR (%) | Monthly payment ($) |
| 1 year. | 10 | 13,220 |
| 2 years. | 10 | 6,610 |
| 5 years. | 10 | 2,644 |
| 10 years. | 10 | 1,322 |
Tips that can help you pay off your loan early
The average student loan in the US is currently at $37,000, as the data released by the Department of Education backs up the data. This shows that as high as this loan can be, it can be daunting to pay them off.
The following tips will help you pay off your student loans at the standard time required or even before the scheduled payment period runs out.
- Set up autopay.
This ensures that as soon as you receive your payment in the form of income, your loan is automatically removed and deposited as a part payment towards the complete payment over some time. This way, you automatically pay your loan debt monthly over a consistent period.
- Budget wisely
Live as frugally as possible. Avoid overspending on things you do not need, and ensure you have saved enough to pay for your student loans.
