How Much Is a $30,000 Student Loan per Month? Loan Payment Breakdown

Many students who attend college must take out loans to do so. The average student debt among bachelor's degree recipients in the 2022-23 year was $29,300, according to the College Board. However, many students must borrow more, so graduating with $30,000 in student loan debt isn't uncommon.

If you've borrowed $30,000, it's important to understand how much a $30,000 student loan costs per month. This guide provides insight into how much you can expect to pay.

Current student loan refinance rates

How much is a $30,000 student loan per month?

Two primary factors determine how much a $30,000 student loan costs:

• Interest rate: “The interest rate is widely considered the most important part of the student loan,” explains Clifford Cornell, a certified financial planner (CFP) and associate financial adviser at Bone Fide Wealth, LLC. “Essentially, this will tell you at what rate the loan will accrue interest on an annual basis. This can also impact the loan repayment plan,” he adds.
• Repayment timeline: A longer repayment timeline results in lower monthly payments because you have more time to pay off the balance. A shorter timeline makes repayment cheaper over time since you don't pay interest for as long, but each monthly payment is higher.

Here's a look at some different loan examples to see how these factors impact your monthly costs for a $30,000 loan.

The 6.53% rate is the rate you'd pay if you took out a Direct Subsidized Loan or Direct Unsubsidized Loan (as an undergraduate) on or after July 1, 2024, and before July 1, 2025. The 9.08% rate is what you'd pay for a Direct PLUS Loan during that same time period. A 15.00% rate is at the upper end of what a private lender might offer to a borrower whose financial credentials suggest some risk.

These examples give you an idea of how interest rates and repayment terms impact what you pay.

Monthly payments on federal vs. private student loans

When you take out a private student loan, you commit to an interest rate and a repayment term at the time you borrow. Once you have your loan, you can't change the terms you agreed to. The only way to change these terms — and your payment — is by refinancing.

If you have a federal student loan, you have more flexibility. You can change your repayment plan as needed. You have multiple payment plan options, including:

• Standard Repayment Plan: This plan has fixed monthly payments and is designed to repay your debt over 10 years, or 10 to 30 years for Direct Consolidation Loans.
• Graduated Repayment Plan: As with the standard plan, you'll repay your loan in a decade, or within 10 to 30 years for consolidated loans. Your payments start lower and gradually increase every 2 years.
• Extended Repayment Plan: With this plan, you can have either fixed or graduated payments. You'll repay your debt over 25 years.
• Income-driven repayment plans: There are 4 income-driven plans to choose from. These plans set payments at 5% to 20% of your discretionary income. After 10 to 25 years of on-time payments (depending on the plan), any remaining balance is forgiven.

If you want to pay off your student loans as soon as possible, you could choose the standard plan. If you need lower monthly payments, an income-driven plan would likely work best.

How interest rates affect your student loan payment

Interest rates have a major impact on your loan payments.

“Interest rates are a key factor in how large your payment is,” says Domenick D'Andrea, a financial adviser and co-founder of DanDarah Wealth Management. “The higher the rate, the higher the percentage of your payment goes toward interest instead of principal.”

Your interest rate also impacts the payment schedule that's affordable for you. “Higher rates mean we may have to extend our time frames or increase payments in order to pay down our balances,” says Cornell.

“Lower rates can allow for lower payments or accelerated repayment schedules as the interest is working against us to a lesser extent,” he adds.

It's not just your rate that affects your payments, either. It's the way your interest rate is set. If you choose a fixed-rate loan, your rate and payment stay the same for the life of the loan. If you choose a variable-rate loan, your rate is tied to a financial index and can go up or down over time, changing your monthly payment and total costs.

All federal student loans have fixed rates, but some private loans have variable rates. If you're considering a variable-rate student loan, consider the risks of a fluctuating rate before signing on the dotted line.

Your credit score and student loan interest rates

When you get a federal student loan, your interest rate is determined based on when you borrow and the loan type. Congress has a set formula for establishing the rates on these loans. Your individual financial credentials have no impact on borrowing costs.

That's not the case with private student loans, though. When you take out a private student loan, your income and credit score both impact the cost of borrowing, as lenders look at these credentials to see how risky it is to loan you money.

If you don't have good credit or solid proof of income, you may be denied a loan or charged a higher rate. Applying with a cosigner who has strong credit can help you find more affordable private student loan options with competitive rates and reasonable monthly costs.

Repayment plans that can lower monthly payments

If your focus is on making payments as affordable as possible, you have options, including:

• Income-driven repayment plans for federal loans: These plans set payments between 5% and 20% of your discretionary income. This can substantially lower payments for some borrowers. Your payment could even be as low as $0 per month. If you need student loan repayment help, exploring income-driven plans is a great option.
• Federal student loan consolidation: Consolidating can provide access to more affordable repayment for federal loans, as you can extend your repayment period up to 30 years. Consolidation also allows parents with Direct PLUS Loans to gain access to income-driven repayment.
• Student loan refinancing: If you have private student loans, refinancing can lower payments without causing a loss of federal borrower benefits. It involves taking out a new loan to repay existing private loans. “Borrowers can always refinance to a potentially lower rate later as there are no prepayment penalties on student loans,” explains Jack Wang, a wealth adviser who specializes in college financial aid with Innovative Advisory Group. “Just keep in mind that you can refinance out of federal loans, but once you do, you can't go back.”

Tips for managing student loan payments

No matter the size of your student loan payment, there are some best practices to follow. For example:

• Set up automatic payments to ensure you don't miss a payment. Many lenders also provide interest rate discounts for autopay.
• Consider making extra student loan payments to repay your debt faster. Just ensure you can work those payments into your budget, making other spending cuts as needed.
• Explore employer programs for loan repayment assistance to see if you qualify for help paying back your debt.

By choosing the right payment plan, making payments on time, and ensuring your payments fit within your budget, you can repay your student debt on a schedule that works for you — and make sure your loans don't do any long-term damage to your financial situation.