$40,000 in student loans at 5% interest costs $424 per month on the standard 10-year repayment plan. Over 10 years, you will pay $10,911 in total interest, making the total cost $50,911.

Key Numbers

• •Monthly payment (standard 10-year plan): $424
• •Total interest over 10 years: $10,911
• •Total cost of the loan: $50,911
• •Paying an extra $100/month pays it off in 7 years 9 months and saves $2,673 in interest