The mission of the Office of Financial Literacy is designed to help you reduce your need for maximum student loans. We want to help you reduce the amount of money taken from student loans. This will reduce your monthly loan repayment amount and allow you greater financial independence when you leave MUSC. Money borrowed for education is classified as a student loan. It is important that you understand what you are agreeing to when you take out student loans, what student loans can be spent on, and repayment options.
How do I calculate how much interest I will pay for my (student) loans?
Most student loans bear simple interest. These loans are generally less expensive than compound interest loans. Use the formula below to calculate simple interest.
Once you understand your budget better, you should only withdraw what is needed and return the excess. Remember you have a student budget, spend like a student.
What would happen if you took $5,000 less per year, or $416 per month? Calculate the difference between what you take out in loans now and the reduction in the total of $5,000. This reduction over time will create a significant difference in your overall loan repayment.
Borrowing wisely means borrowing only what you need. You will have the option of returning unused loans. This will help you reduce the total amount of loans taken out. Be on the lookout for information on financial aid return timelines each semester.
There are many student loan calculators available online. Check out a few below.
Smart Asset Student Loan Calculator
Map your future income-based reimbursement calculator
Medloans Calculator and Organizer
Dental Loan Organizer and Calculator
Looking for more financial aid resources? Consult the Financial Aid Office.
Student Loan Repayment Management
Now that you have student loans, you will need to repay the lender. There are several options for loan repayment. Always refer to the terms of the loan agreement to better understand what is available to you.
Federal student loan payments begin once you graduate, enroll part-time, or leave school. Private loans are subject to the terms of the agreement. Once you enter repayment, your loan manager will place you on the standard repayment plan. You can apply for an income repayment plan.
The Standard Repayment Plan
This plan calculates a fixed monthly payment. This is paid for 10 years. There is a 25 year option in the extended repayment plan. At the end of the 10-year period, student loans are repaid in full.
Income repayment plan
This plan calculates student loan repayments based on your income and family composition. Typically, these repayment plans are less expensive per month, but will cost you more over the course of repayment.
Cancellation of civil service loans
If you are employed by the US government (federal, state, local, or tribal) or a nonprofit organization, you may be eligible for this program. To qualify, you must work full time, have direct loans, use an income repayment plan, and make 120 qualifying payments.
Canceled loans are those that are direct loan programs that are not in default. Amounts remitted are not considered income by the IRS. Thus, you will not pay federal tax on the amounts remitted.
See Public Service Loan Exemption from Federal Student Aid for more information on eligible employers, employment certification, eligible loans, and more.
Seek help from the Office of Student Financial Literacy before you graduate so you can start your new career with a better understanding of how to manage your student loans.